Acc349 Cost / Managerial Accounting: E11-1 Vintech Company is planning to produce 2,000 units

Acc349 Cost / Managerial Accounting

E11-1
Vintech Company is planning to produce 2,000 units of product in 2011. 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.

Instructions:
(a) Compute the budgeted amounts for 2011 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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