Nike, Inc. is planning to produce 4,500 units of product A in 2018. Each unit requires 4 pounds of materials at $10 per pound and .2 hours of labor at $20 per hour. The overhead rate is 75% of direct labor.

Instructions (a) Compute the budgeted amounts for 2018 for direct materials to be used, direct labor, and applied overhead. (b) Compute the standard cost of one unit of product.