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 tA $

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 tA $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles 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?
Stefani Company has gathered the following information about its product.Direct materials: Each unit of product contains 4.00 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 1.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.Direct labor. Each unit requires 1.80 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani’s employees is $13.10. Payroll taxes and fringe benefits are an additional $2.60 per hour.Manufacturing overhead. Overhead is applied at a rate of $4.90 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 $enter the Total standard cost per unit in dollars rounded to 2 decimal places
Crane 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 unit
Stefani 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 unit
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
Current Attempt in Progress Maria Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.4 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.6 pounds. Materials cost $2 per pound, but Maria always takes the 5% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. Direct labor. Each unit requires 2.8 hours of labor. Setup, cleanup, and downtime average 0.1 hours per unit. The average hourly pay rate of Maria's employees is $13.1. Payroll taxes and fringe benefits are an additional $3.0 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.9 per direct labor hour. Compute Maria's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $
Ayayai Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $ 1 per pound, but Ayayai always takes the 5.00 % cash discount all of its suppliers offer. Freight costs average $ 0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Ayayai's employees is $ 10.60. Payroll taxes and fringe benefits are an additional $ 3.10 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 4.10 per direct labor hour. Compute Ayayai's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit $
To make a batch of 1,000 units of a certain item, it is estimated that 120 direct labor hours are required at a cost of $10/hour. Direct material costs are estimated at $1,500 per batch. The overhead costs are calculated based on an overhead rate of $7.50 per direct labor hour. The item can be readily purchased from a local vendor for $4 per unit. a. Should the item be made or purchased? b. Over what range of overhead rate is your answer in part a valid?
Bramble Corp. 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 $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 $17 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.70 per hour, and employee benefits average $3.40 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 labor rate per hour is O $17.00. O $17.30. O $22.40. O $22.10. Save for Later Attempts: 0 of 1 used Submit Answer
Coronado Industries produces a product that requires 3.70 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.60 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
Bramble Corp. 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 $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 $17 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.70 per hour, and employee benefits average $3.40 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 labor rate per hour is $22.40. O $17.30. $22.10. $17.00.
Sheridan Company 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 $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, and employee benefits average $2.40 per hour. Standard production time is 1.50 hour per unit, and the allowance for rest periods and setup is 0.70 hours and 0.10 hours, respectively. The standard direct labor hours per unit is O2.20 hours. O2.30 hours. O 1.60 hours. O 1.50 hour.