ACC- 561 - Stanton Company Problem

Stanton Company is planning to produce 1,000 units of product in 2012. Each unit requires 1.40 pounds of materials at $7.90 per pound and a half-hour of labor at $12.40 per hour. The overhead rate is 90% of direct labor.

(a) Compute the budgeted amounts for 2012 for direct materials to be used, direct labor, and applied overhead.

Direct materials		$[removed]
Direct labor		$[removed]
Overhead		$[removed]

(b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.)

Standard cost

$[removed]