Question: Parson Company is planning to product 1,990 units of products in 2017. Each Unit requires 2.20 pounds of materials at $6.80 and a half-hour of labor at $14.00 per hour. The overhead rate is 40% of direct labor.
Required:
1. Compute the budgeted amounts for 2017 direct materials to be used, direct labor, and applied overhead.
2. Compute the standard cost of one unit of product.
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