Calculate the standard cost per unit. E12.19 (LO 1) Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.5 kg of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 kg. Materials cost $5 per kilogram, but Muhsin always takes the 2% cash discount that all of its suppliers offer. Freight costs average $0.25 per kilogram. Direct labour: Each unit requires two hours of labour. Set-up, cleanup, and downtime average 0.3 hours per unit. The average hourly pay rate of Muhsin'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 labour hour. Instructions Calculate Muhsin's total standard cost per unit. Calculate materials, price, and quantity variances.

Calculate the standard cost per unit. E12.19 (LO 1) Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.5 kg of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 kg. Materials cost $5 per kilogram, but Muhsin always takes the 2% cash discount that all of its suppliers offer. Freight costs average $0.25 per kilogram. Direct labour: Each unit requires two hours of labour. Set-up, cleanup, and downtime average 0.3 hours per unit. The average hourly pay rate of Muhsin'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 labour hour. Instructions Calculate Muhsin's total standard cost per unit. Calculate materials, price, and quantity variances.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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