Stefani Company has gathered the following information about its product.
Direct materials. Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost S5 per pound, but Stefani always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.
Direct labor. Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.4 hours per unit. The average hourly pay rate of Stefani s employees is $12. Payroll taxes and
Manufacturing overhead. Overhead is applied at a rate of $7 per direct labor hour
Instructions
Compute Stefani's total
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Managerial Accounting: Tools for Business Decision Making
- Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?arrow_forwardStefani 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.Compute Stefani’s total standard cost per unit. Total standard cost per unitarrow_forwardCrane Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.9 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.7 pounds. Materials cost $5.30 per pound, but Crane always takes the 2.90% cash discount all of its suppliers offer. Freight costs average $0.38 per pound. Direct labor. Each unit requires 1.73 hours of labor. Setup, cleanup, and downtime average 0.43 hours per unit. The average hourly pay rate of Crane's employees is $9.73. Payroll taxes and fringe benefits are an additional $2.53 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.73 per direct labor hour. Compute Crane's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.) Total standard cost per unitarrow_forward
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- Vaughn Manufacturing produces a product that requires 3.40 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.40 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, per hour, and employee benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials quantity per unit is 3.40 pounds. 3.80 pounds. 3.50 pounds. 3.90 pounds.arrow_forwardWaterway Industries produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $4 per pound, but a 2% discount is usually taken. Freight costs are $0.30 per pound, and receiving and handling costs are $0.03 per pound. The hourly wage rate is $15 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.50 per hour, and employee benefits average $3.00 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct materials price per pound is $3.92. $4.33. $4.00. $4.25.arrow_forwardBonita Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $4 per pound, but a 2% discount is usually taken. Freight costs are $0.4 per pound, and receiving and handling costs are $0.08 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.3 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively.The standard direct materials price per pound is  A. $3.92. B. $4.40. C. $4.48. D. $4.00.arrow_forward
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- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College