Stanton Company is planning to produce 2,000 units of product in 2012. Each unit requires 2.50 pounds of materials at $6.70 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 70% of direct labor.
(a) Compute the budgeted amounts for 2012 for direct materials to be used, direct labor, and applied overhead.
(b) Compute the standard cost of one unit of product.