Dobbs company has gathered the information shown below

Reference no: EM13608822

Dobbs Company has gathered the information shown below about its product. Direct materials: Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost $4 per pound, but Dobbs always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor: Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.2 hours per unit. The average hourly pay rate of Dobbs'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 labor hour. Compute Dobbs's total standard cost per unit.

Reference no: EM13608822

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