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Parsons Company is planning to produce 2,000 units of product in 2017. Each unit requires 3 pounds of materials at $5 per pound and a half-hour of labor at $16 per hour. The
Instructions
(a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead.
(b) Compute the
(c) What are the potential advantages to a corporation of using standard costs?
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