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Exercise 23-1 Parsons Company is planning to produce 1,400 units of product in 2017 Each unit requires 3.40 pounds of materials at $5.80 per pound

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Exercise 23-1 Parsons Company is planning to produce 1,400 units of product in 2017 Each unit requires 3.40 pounds of materials at $5.80 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 50% of direct labor (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead Direct materials Direct labor Overhead Compute the standard cost of one unit of product (Round answer to 2 decimal places, e.. 2.75.) Standard cost Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon The following are required for production of a 330-gallon batch 3,400 ounces of grape concentrate at $0.02 per ounce 495 pounds of granulated sugar at $0.57 per pound 462 lemons at $0.89 each 990 yeast tablets at $0.26 each 1,650 nutrient tablets at $0.14 each 2,400 ounces of water at $0.001 per Ounce Hank estimates that 4% of the grape concentrate is wasted, 12% of the sugar is lost, and 27% of the lemons cannot be used Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Standard Cost Per Gallon $ Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.40 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.70 pounds. Materials cost $2 per pound, but Stefani always takes the 3.00% cash discount all of its suppliers offer. Freight costs average $0.35 per pound. Direct labor. Each unit requires 1.30 hours of labor Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly pay rate of Stefani's employees is $13.20. Payroll taxes and fringe benefits are an additional $3.00 per hour Manufacturing overhead. Overhead is applied at a rate of $7.00 per direct labor hour Compute Stefani's total standard cost per unit. (Round answer to 2 decimal places, e.g. 1.25.) Total standard cost per unit

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