Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $1 per pound, but Stefani always takes the 1.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.00 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $10.00. Payroll taxes and fringe benefits are an additional $2.00 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.00 per direct labor hour. Compute Stefani's total standard cost per unit
Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $1 per pound, but Stefani always takes the 1.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.00 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $10.00. Payroll taxes and fringe benefits are an additional $2.00 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.00 per direct labor hour. Compute Stefani's total standard cost per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stefani Company has gathered the
following information about its
product. Direct materials: Each unit of
product contains 3.00 pounds of
materials. The average waste and
spoilage per unit produced under
normal conditions is 0.10 pounds.
Materials cost $1 per pound, but
Stefani always takes the 1.00% cash
discount all of its suppliers offer.
Freight costs average $0.25 per pound.
Direct labor. Each unit requires 1.00
hours of labor. Setup, cleanup, and
downtime average 0.10 hours per unit.
The average hourly pay rate of
Stefani's employees is $10.00. Payroll
taxes and fringe benefits are an
additional $2.00 per hour.
Manufacturing overhead. Overhead is
applied at a rate of $4.00 per direct
labor hour. Compute Stefani's total
standard cost per unit
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