Business, 10.04.2020 20:19 rafaela12

Grouper Company has gathered the following information about its product

Direct materials: Each unit of product contains 3.40 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.60 pounds. Materials cost $ 5 per pound, but Stefani always takes the 4.00 % cash discount all of its suppliers offer. Freight costs average $ 0.40 per pound.

Direct labor. Each unit requires 1.00 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani’s employees is $ 10.00 . Payroll taxes and fringe benefits are an additional $ 3.90 per hour.

Manufacturing overhead. Overhead is applied at a rate of $ 4.50 per direct labor hour.

a. Compute Stefani’s total standard cost per unit. (Round intermediate calculations and final answer to 2 decimal places, e. g. 1.25.)

Total standard cost per unit $

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Grouper Company has gathered the following information about its product

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