Problem
Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.20 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $2 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 2.10 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly pay rate of Stefani's employees is $13.20. Payroll taxes and fringe benefits are an additional $2.20 per hour. Manufacturing overhead. Overhead is applied at a rate of $4.80 per direct labor hour.
Compute Stefani's total standard cost per unit.