Question
Sofie Industries gathered the following budgeted information about its product: Each unit of product contains 5 kg of materials at a cost of $8 per
Sofie Industries gathered the following budgeted information about its product:
Each unit of product contains 5 kg of materials at a cost of $8 per kilogram. The average waste and spoilage per unit produced under normal conditions is 0.30 kg. Freight costs average $0.80 per kilogram.
Each unit requires 3 hours of labour. Rest periods and cleanup average 0.20 hours per unit and set-up time averages 0.40 hours. The average pay rate of Sofie's employees is $13 per hour with an additional $2.00 per hour for payroll taxes and benefits.
Manufacturing overhead is applied at a rate of $8 per direct labour hour.
What's Sofie's total standard cost per unit.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started