Direct materiols: Each unit of product contains 3.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.5 pounds. Materials cost $4 per pound, but Amy always takes the 5% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2.0 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Amy's employees is $13.7. Payroll taxes and fringe benefits are an additional $2.2 per hour. Manufacturing overhead. Overhead is applied at a rate of $6.0 per direct labor hour. Compute Amy's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.) Total standard cost per unit $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Amy Company has gathered the following information about its product.
Direct materials: Each unit of product contains 3.5 pounds of materials. The average waste and spoilage per unit produced under
normal conditions is 1.5 pounds. Materials cost $4 per pound, but Amy always takes the 5% cash discount all of its suppliers offer.
Freight costs average $0.25 per pound.
Direct labor. Each unit requires 2.0 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay
rate of Amy's employees is $13.7. Payroll taxes and fringe benefits are an additional $2.2 per hour.
Manufocturing overhead. Overhead is applied at a rate of $6.0 per direct labor hour.
Compute Amy's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.)
Total standard cost per unit
24
Transcribed Image Text:Amy Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.5 pounds. Materials cost $4 per pound, but Amy always takes the 5% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2.0 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Amy's employees is $13.7. Payroll taxes and fringe benefits are an additional $2.2 per hour. Manufocturing overhead. Overhead is applied at a rate of $6.0 per direct labor hour. Compute Amy's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.) Total standard cost per unit 24
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education