Jennifer Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.0 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.0 pounds. Materials cost $1 per pound, but Jennifer always takes the 5% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.7 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Jennifer's employees is $10.6. Payroll taxes and fringe benefits are an additional $3.4 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.9 per direct labor hour. Compute Jennifer's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $

Jennifer Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.0 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.0 pounds. Materials cost $1 per pound, but Jennifer always takes the 5% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.7 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Jennifer's employees is $10.6. Payroll taxes and fringe benefits are an additional $3.4 per hour. Manufacturing overhead. Overhead is applied at a rate of $7.9 per direct labor hour. Compute Jennifer's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EB: Salley is developing material and labor standards for her company. She finds that it costs $0.55 per...

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