Parsons Company is planning to produce 2,700 units of product in

Parsons Company is planning to produce 2,700 units of product in

Subject: Business    / Accounting
Question

Parsons Company is planning to produce 2,700 units of product in 2017. Each unit requires 3.60 pounds of materials at $4.40 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 90% of direct labor.

(a)

Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead.

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Direct materials    $
Direct labor    $
Overhead    $

(b)

Compute the standard cost of one unit of product.(Round answer to 2 decimal places, e.g. 2.75.)

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Standard cost