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Shannon Company is planning to produce 2,600 units of product in 2014. Each unit requires 2.10 pounds of materials at $7.20 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 90% of direct labor.
(a) Compute the budgeted amounts for 2014 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. (Round answer to 2 decimal places, e.g. 2.75.)
Standard cost
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