Maria Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.1 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.9 pounds. Materials cost $4 per pound, but Maria always takes the 1% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2.1 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Maria's employees is $12.6. Payroll taxes and fringe benefits are an additional $2.3 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.9 per direct labor hour. Compute Maria's total standard cost per unit. (Round answer to 2 decimal places, eg. 1.25.)
Maria Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.1 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.9 pounds. Materials cost $4 per pound, but Maria always takes the 1% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2.1 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Maria's employees is $12.6. Payroll taxes and fringe benefits are an additional $2.3 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.9 per direct labor hour. Compute Maria's total standard cost per unit. (Round answer to 2 decimal places, eg. 1.25.)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Maria Company has gathered the following information about its product.
Direct materials: Each unit of product contains 3.1 pounds of materials. The average waste and spoilage per unit produced under
normal conditions is 0.9 pounds. Materials cost $4 per pound, but Maria always takes the 1% cash discount all of its suppliers offer.
Freight costs average $0.25 per pound.
Direct labor. Each unit requires 2.1 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay
rate of Maria's employees is $12.6. Payroll taxes and fringe benefits are an additional $2.3 per hour.
Manufacturing overhead. Overhead is applied at a rate of $4.9 per direct labor hour.
Compute Maria's total standard cost per unit. (Round answer to 2 decimal places, eg. 1.25.)
Total standard cost per unit
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