Refer to 17.28. At the beginning of this year the Roberts Company leased a new machine—for $4,500 per year—that would allow production of a unit of product X out of | pound of direct materials in 4 direct labor hours. Mr. Roberts was so happy with the efficiency of this new machine that he raised the labor rate he paid his employees to $13 per hour. This change did not affect the total variable overhead budgeted at practi- cal capacity.

Required: (1) Revise the quantity and price standards for direct materials, direct labor, and factory overhead so that they reflect the expected changes resulting from the new machine.

(2) Compute the revised total standard cost per unit of product X.

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