Brief Exercise 24-01

Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,000,000 and $1,300,000. Compute the estimates for (a) a standard cost and (b) a budgeted cost. (Round standard costs to 2 decimal places, e.g. 1.25.)

				Materials		Labor
(a)		Standard cost		$		$
(b)		Budgeted cost		$		$