Question - Parsons Company is planning to produce 2,900 units of product in 2017. Each unit requires 2.00 pounds of materials at $7.00 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor.
(a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead.
Direct materials$_______
Direct labor$______
Overhead$______
(b) Compute the standard cost of one unit of product.