Ayayai Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $ 1 per pound, but Ayayai always takes the 5.00 % cash discount all of its suppliers offer. Freight costs average S 0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Ayayai's employees is $ 10.60. Payroll taxes and fringe benefits are an additional $ 3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit S
Ayayai Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $ 1 per pound, but Ayayai always takes the 5.00 % cash discount all of its suppliers offer. Freight costs average S 0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Ayayai's employees is $ 10.60. Payroll taxes and fringe benefits are an additional $ 3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit S
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Ayayai Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and
spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $ 1 per pound, but Ayayai always takes the 5.00 % cash discount all of its suppliers offer.
Freight costs average $ 0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly
pay rate of Ayayai's employees is $ 10.60. Payroll taxes and fringe benefits are an additional $ 3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $
4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e89ef0a-33d1-4265-a2d3-59ecd3a68079%2Fbb41b417-af70-47d7-b051-35996549f1aa%2F2l4aoxl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ayayai Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and
spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $ 1 per pound, but Ayayai always takes the 5.00 % cash discount all of its suppliers offer.
Freight costs average $ 0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly
pay rate of Ayayai's employees is $ 10.60. Payroll taxes and fringe benefits are an additional $ 3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $
4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $
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