Question - Shannon Company is planning to produce 2,800 units of product in 2014. Each unit requires 3.20 pounds of materials at $8.00 per pound and a half-hour of labor at $12.80 per hour. The overhead rate is 90% of direct labor.
Compute the budgeted amounts for 2014 for direct materials to be used, direct labor, and applied overhead.
Compute the standard cost of one unit of product.