Parsons Company is planning to produce 1,400 units of product in 2017. Each unit requires 3.40 pounds of materials at $5.80 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 50% of direct labor. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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Parsons Company is planning to produce 1,400 units of product
in 2017. Each unit requires 3.40 pounds of materials at $5.80 per
pound and a half-hour of labor at $12.00 per hour. The overhead
rate is 50% of direct labor.
Compute the budgeted amounts for 2017 for direct materials to
be used, direct labor, and applied overhead.
Compute the standard cost of one unit of product. (Round
answer to 2 decimal places, e.g. 2.75.)
Transcribed Image Text:Parsons Company is planning to produce 1,400 units of product in 2017. Each unit requires 3.40 pounds of materials at $5.80 per pound and a half-hour of labor at $12.00 per hour. The overhead rate is 50% of direct labor. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)
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