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Parsons Company is planning to produce2,700units of product in 2017. Each unit requires3.60pounds of materials at $4.40per pound and a half-hour of labor at $16.00per
Parsons Company is planning to produce2,700units of product in 2017. Each unit requires3.60pounds of materials at $4.40per pound and a half-hour of labor at $16.00per hour. The overhead rate is90% 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 | $ |
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