Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains

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Muhsin Company has gathered the following information about its product:
Direct materials: Each unit of product contains 4.5 kg of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 kg. Materials cost $4 per kilogram, but Muhsin always takes the 2% cash discount that all of its suppliers offer. Freight costs average $0.25 per kilogram.
Direct labour: Each unit requires two hours of labour. Set-up, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Muhsin's employees is $12. Payroll taxes and fringe benefits are an additional $3 per hour.
Manufacturing overhead: Overhead is applied at a rate of $6 per direct labour hour.
Instructions
Calculate Muhsin's total standard cost per unit.
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Related Book For  book-img-for-question

Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118033890

3rd Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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