Question: Stanton Company is planning to produce 2 000 units of product

Stanton Company is planning to produce 2,000 units of product in 2012. 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.

(a) Compute the budgeted amounts for 2012 for direct materials to be used, direct labor, and applied overhead.
(b) Compute the standard cost of one unit of product.
(c) What are the potential advantages to a corporation of using standard costs?

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  • CreatedMarch 02, 2012
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