Question 1: Kimm Company has gathered the following information about its product: Direct materials. Each unit of product contains 4.5 pounds of materials. Materials cost $5 per pound. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.3 hours per unit. The average hourly pay rate of Kimm's employees is $12. Payroll taxes and fringe benefits are an additional $3 per hour. Manufacturing overhead. Overhead is applied at a rate of $7 per direct labor hour. Compute Kimm's total standard cost per unit