Parsons Company is planning to produce2,400units of product in 2017. Each unit requires2.00pounds of materials at $7.80per pound and a half-hour of labor at $12.00per hour. The overhead rate is40% 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		$

(b)

Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)

Standard cost

$

IE