Parsons Company is planning to produce 2,000 units of product in 2022. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $16 per hour. The overhead rate is 70% of direct labor

Instructions
a. Compute the budgeted amounts for 2022 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?