Stefani Company has gathered the following information about its
product. Direct materials: Each unit of product contains 4.20
pounds of materials. The average waste and spoilage per unit
produced under normal conditions is 0.80 pounds. Materials cost
per pound, but Stefani always takes the 3.00% cash discount all of
its suppliers offer. Freight costs average Freight costs average $0.40 per pound. Direct
labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and
downtime average 0.10 hours per unit. The average hourly pay rate
of Stefani’s employees is $11.60. Payroll taxes and fringe benefits
are an additional $2.50 per hour. Manufacturing overhead. Overhead
is applied at a rate of $4.70 per direct labor hour. Compute
Stefani’s total standard cost per unit

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