Question

Parsons Company is planning to produce 1,500 units of product in 2017. Each unit requires 1.60 pounds of materials at $5.00 p

0 0
Add a comment Improve this question Transcribed image text
Answer #1

A)

Direct materials (1500*1.60*5) 12,000
Direct labor (1500*0.50*16) 12,000
Overhead (12,000*60%) 7200

B)

Standard cost = (12,000+12,000+7,200)/1,500

= 20.80

Add a comment
Know the answer?
Add Answer to:
Parsons Company is planning to produce 1,500 units of product in 2017. Each unit requires 1.60...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Parsons Company is planning to produce 2,000 units of product in 2020. Each unit requires 1.40...

    Parsons Company is planning to produce 2,000 units of product in 2020. Each unit requires 1.40 pounds of materials at $7.60 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 80% of direct labor. (a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead. Direct materials $ enter a dollar amount Direct labor $ enter a dollar amount Overhead $ enter a dollar amount (b) Compute...

  • QuestIUITO View Policies Current Attempt in Progress Parsons Company is planning to produce 2.700 units of...

    QuestIUITO View Policies Current Attempt in Progress Parsons Company is planning to produce 2.700 units of product in 2020. Each unit requires 3.80 pounds of materials at $7.20 per pound and a half hour of labor at $16.00 per hour. The overhead rates 60 of direct labor. Compute the budgeted amounts for 2020 for direct materials to be used direct labor, and applied overhead. Direct materials Direct labor Overhead $ $ $ Compute the standard cost of one unit of...

  • Sonic, Inc. is planning to produce 2,500 units of product in 2016. Each unit requires 3...

    Sonic, Inc. is planning to produce 2,500 units of product in 2016. Each unit requires 3 pounds of materials at $6 per pound and a half hour of labor at $16 per hour. The overhead rate is 75% of direct labor. | Compute the budgeted amounts for 2016 for direct materials to be used, direct labor, and applied overhead. Direct Materials $ Direct Labor $ Overhead ces Compute the standard cost of one unit of product. Standard Cost $

  • Stefani Company has gathered the following information about its product. Direct materials: Each unit of product...

    Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $1 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly...

  • Stefani Company has gathered the following information about its product. Direct materials: Each unit of product...

    Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $1 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly...

  • Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contai...

    Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.10 pounds. Materials cost $1 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.30 per pound. Direct labor. Each unit requires 1.60 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The average hourly...

  • Question 1 View Policies Current Attempt in Progress Tang Company accumulates the following data concerning raw...

    Question 1 View Policies Current Attempt in Progress Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials-net purchase price $2.50, freight- in $0.30, and receiving and handling $0.20. (2) Quantity per gallon of finished product-required materials 3.60 pounds, allowance for waste and spoilage 0.90 pounds. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per pound of raw materials. $ (b)...

  • Sheffield Company has gathered the following information about its product. Direct materials. Each unit of product...

    Sheffield Company has gathered the following information about its product. Direct materials. Each unit of product contains 5.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.80 pounds. Materials cost $1 per pound, but Sheffield always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly...

  • Sheffield Company has gathered the following information about its product. Direct materials: Each unit of product...

    Sheffield Company has gathered the following information about its product. Direct materials: Each unit of product contains 5.00 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.00 pounds. Materials cost $1 per pound, but Sheffield always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 1.70 hours of labor. Setup, cleanup, and downtime average 0.20 hours per unit. The average hourly...

  • Exercise 23-3 Stefani Company has gathered the following information about its product. Direct materials: Each unit...

    Exercise 23-3 Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.70 pounds. Materials cost $5 per pound, but Stefani always takes the 5.00% cash discount all of its suppliers offer. Freight costs average $0.45 per pound. Direct labor. Each unit requires 2.40 hours of labor. Setup, cleanup, and downtime average 0.10 hours per unit. The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT