Standard Costs and Balanced Scorecard

Stefani Company has gathered the following information about its product. Direct materials. Each unit of product 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost $5 per pound, but stefani always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound.

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