In preparing the standard cost for each unit of QS542, the company’s only product, the accountant for Green Earth Solvents Corporation has developed the following data for the year 2019:
Total budgeted production, 27,000 units
Raw material:
Three units of raw material are required for each unit of finished goods.
The cost of each unit of raw material is $17.
Labor:
Four hours of direct labor are required for each unit of finished goods.
The labor rate per hour is $15.00.
Manufacturing overhead:
Overhead is 20 percent of direct labor.
Compute the standard cost per unit of product, showing the standard cost of materials, labor, and overhead.