The Company's Accountant Developed the Data Given Below for Product $\quad$

question 16

Short Answer

The company's accountant developed the data given below for Product X for the year 2013. Use this information to compute the answers to the questions that follow. Total budgeted production: 10,000 units
Raw materials: $\quad$ 3 units of raw materials, costing $\$ 2$ per unit, required for each unit of finished goods
Direct labor: $\quad 3$ hours of labor at the rate of $\$ 10$ per hour required for each unit of finished goods
Mfg. overhead: $\quad \$ 70,000$ budgeted for 10,000 units of finished goods 1. What is the standard cost per unit of product for materials?
2. What is the standard cost per unit of product for labor?
3. What is the standard cost per unit of product for overhead?
4. What is the total standard cost per unit of product?

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Definitions:

Future Event

An occurrence or situation that has not yet happened but is anticipated or expected to occur in the course of business or life.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered on credit.

Revenue Recognition

A principle guiding how and when revenue is recognized in the accounting records, generally when earned and realizable.

Economic Substance

The underlying economic or commercial purpose of a transaction, which must exist for it to be recognized for tax or accounting purposes.