Mini-Exercise 14-8 (Algo) Standard product cost LO 14-9

ABC Companys budgeted sales for June, July, and August are 13,600, 17,600, and 15,600 units, respectively. Each unit that ABC Company produces uses 5 pounds of raw material. ABC requires 25% of the next months budgeted production as raw material inventory each month. ABC Company currently pays a standard rate of $1.5 per pound for raw materials. Each unit should be produced in 15 minutes of direct labor time at a standard direct labor rate of $12.8 per hour. Manufacturing overhead is applied at the standard rate of $16.8 per direct labor hour.

Required:

Calculate the standard cost per unit for ABC Company.