Kimm company has gathered the following information about, Ask an Expert

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Kimm Company has gathered the following information about its product.

Direct materials: Each unit of product contains 4.50 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.20 pounds. Materials cost $2 per pound, but Kimm always takes the 2.94% cash discount all of its suppliers offer. Freight costs average $0.28 per pound.

Direct labor. Each unit requires 1.40 hours of labor. Setup, cleanup, and downtime average 0.26 hours per unit. The average hourly pay rate of Kimm's employees is $10.40. Payroll taxes and fringe benefits are an additional $2.90 per hour.

Manufacturing overhead. Overhead is applied at a rate of $5.10 per direct labor hour.

Compute Kimm's total standard cost per unit.

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