Question

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 $

Answer 1

Direct material (2,500*3*$6)	$ 45,000
Direct labor (2,500*0.50*$16)	$ 20,000
Overhead ($20,000*75%)	$ 15,000
Standard cost per unit ($45,000+$20,000+$15,000)/2,500)	$          32

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