Subatomic Shirts is planning on producing 40,000 t-shirts in the year. Each t-shirt requires 0.60 metres of material at $4 per metre and 0.15 hour of direct labour at $18 per hour. Overhead is applied at the rate of $8 per direct labour hour.

Calculate the following budgeted costs:

1. Total metres of direct materials required to produce 40,000 t-shirts: _______ metres

2. Total direct material cost to produce 40,000 t-shirts: $

3. Total direct labour hours required to produce 40,000 t-shirts: _________ hours

4. Total direct labour cost to produce 40,000 t-shirts: $

5. Total manufacturing overhead cost applied in the production of 40,000 t-shirts: $

Now calculate the following standard costs per t-shirt (per unit):

6. Direct material cost per t-shirt: $ ________ per t-shirt

7. Direct labour cost per t-shirt: $ _________ per t-shirt

8. Manufacturing overhead cost per t-shirt: $ _________ per t-shirt

1. Standard cost of one unit of product: $ _________ per t-shirt