Exercise 25-3

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Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.40 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.70 pounds. Materials cost $ 2 per pound, but Stefani always takes the 3.00 % cash discount all of its suppliers offer. Freight costs average $ 0.35 per pound. Direct labor. Each unit requires 1.30 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefanis employees is $ 13.20 . Payroll taxes and fringe benefits are an additional $ 3.00 per hour. Manufacturing overhead. Overhead is applied at a rate of $ 7.00 per direct labor hour. Compute Stefanis total standard cost per unit. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)

Total standard cost per unit

$