A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad:
The piece of sheet metal from which 8 pad cases can be made costs $0.16.
This amount is based on the number of sheets in a 4,000-pound bundle of sheet metal, which is the usual purchase quantity.
The foam pad that is put in the case costs $0.08, based on the number of pads that can be cut from a large roll of foam.
Production standards, based on engineering analysis recognizing attainable performance, provide for the manufacture of 1,770 pads by 5 workers in an eight-hour shift. The standard direct labor pay rate is $11.75 per hour.
Manufacturing overhead is applied to units produced using a predetermined overhead application rate of $16 per direct labor hour, of which $6.35 per hour is fixed manufacturing overhead.
Required:
(a)Calculate the standard absorption cost of a package of 16 stamp pads. (Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)