Kimm Company has gathered the following information about its product.
Direct materials. Each unit of product contains4.40pounds of materials. The average waste and spoilage per unit produced under normal conditions is0.50pounds. Materials cost $4per pound, but Kimm always takes the4.94% cash discount all of its suppliers offer. Freight costs average $0.26per pound.
Direct labor. Each unit requires1.20hours of labor. Setup, cleanup, and downtime average0.23hours per unit. The average hourly pay rate of Kimm’s employees is $13.40. Payroll taxes and fringe benefits are an additional $3.30per hour.
Manufacturing overhead. Overhead is applied at a rate of $7.20per direct labor hour.
Compute Kimm’s total standard cost per unit.