Please help me on this homework Kimm Company has gathered the information shown
ID: 2477721 • Letter: P
Question
Please help me on this homework
Kimm Company has gathered the information shown below about its product. Direct materials. Each unit of product contains 4.70 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.40 pounds. Materials cost $3 per pound, but Kimm always takes the 2.98% cash discount all of its suppliers offer. Freight costs average SO.29 per pound. Each unit requires 2.70 hours of labor. Setup, cleanup, and downtime average 0.18 hours per unit. The average hourly pay rate of Kimm's employees is $12.10. Payroll taxes and fringe benefits are an additional $3.80 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.80 per direct labor hour. Compute Kimm's total standard cost per unit. (Round standard costs to 2 decimal places, e.g. 2.75.) Click if you would like to Show Work for this question:Explanation / Answer
Calculation of Standard Cost per Unit:
Direct Material Cost : 4.7 Pounds +Wastage 0.4 Pounds = 5.1 Pounds
Net Cost (After Discount)= 5.1*$3-(5.1*$3*2.98/100) =5.1-0.152 = $14.84
Add: Frieght $ 0.29*5.1= $1.479
Total Cost =$14.84+$1.479 =$16.32
Direct Labour: 2.7+0.18 =2.88Hours
Cost = 2.88*(12.10+3.80) =$45.79
Manufacturing OH = 2.88*5.8 = $16.7
Hence Cost of the prroduct is =DM+DL+Manufacturing OH = $16.32+ $45.79+ $16.7 =$78.82