Question - Vintech Company is planning to produce 2,000 units of product in 2011. Each unit requires 3 pounds of materials at $6 per pound and a half hour of labor at $14 per hour. The overhead rate is 70% of direct labor.
Compute the budgeted amounts for 2011 for direct materials to be used, direct labor, and applied overhead.
Compute the standard cost of one unit of product.