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Stefani Company has gathered the following information about its product. Direct materials : Each unit...

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Accounting

Stefani Company has gathered the following information about its product. Direct materials : Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.90 pounds. Materials cost $4 per pound, but Stefani always takes the 1.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2.10 hours of labor. Setup, cleanup, and downtime average 0.20 hours.

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