1. Hal's Heating produces furnaces for commercial buildings. The company's master budget shows the following standards information.

Expected production for January:	300 furnaces
Direct materials	3 heating elements at $40 per element
Direct labor	35 hours per furnace at $18 per hour
Variable manufacturing overhead	35 direct labor hours per furnace at $15 per hour

1. Calculate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead.

Hal's Heating
Direct Material Budget
Year Ending December 31
Units to be produced
Materials required per unit 3 elements*40.00 each
Material needed in production
Add desired ending inventory
Material needed in inventory
Deduct beginning inventory
Direct materials to be purchased
Cost of materials per pound
Cost of materials to be purchased
Direct material cost per unit
Hal's Heating
Direct Labor Budget
Year Ending December 31
Units to be produced (from production budget)
Direct labor hours per unit
Total direct labor hours needed in production
Labor rate per hour
Total direct labor hours cost
Direct labor cost per unit

Hal's Heating
Manufacturing Overhead Budget
Year Ending December 31
Units to be produced
Variable overhead costs
Indirect material
Indirect Labor
Other
Total variable overhead cost
Fixed overhead costs
Salaries
Rent
Depreciaton
Total fixed overhead costs
Total overhead costs

1. Assume Hal's Heating produced 320 furnaces during January. Calculate a flexible budget for direct materials, direct labor, and variable manufacturing overhead.