Please do not give solution in image format thanku Stefani Company has gathered thefollowing information about itsproduct. Direct materials: Each unit ofproduct contains 3.00 pounds ofmaterials. The average waste andspoilage per unit produced undernormal conditions is 0.10 pounds.Materials cost $1 per pound, butStefani always takes the 1.00% cashdiscount all of its suppliers offer.Freight costs average $0.25 per pound.Direct labor. Each unit requires 1.00hours of labor. Setup, cleanup, anddowntime average 0.10 hours per unit.The average hourly pay rate ofStefani's employees is $10.00. Payrolltaxes and fringe benefits are anadditional $2.00 per hour.Manufacturing overhead. Overhead isapplied at a rate of $4.00 per directlabor hour. Compute Stefani's totalstandard cost per unit

Standard cost per unit = Direct Material + Direct Labor + Manufacturing Overhead

Answered: Stefani Company has gathered the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.00 pounds. Materials cost $1 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay. rate of Stefani's employees is $10.60. Payroll taxes and fringe benefits are an additional $3.40 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.90 per direct labor hour. Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $
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