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Lovitz Company is planning to produce 2,500 units of product in 2008. Each unit requires 4 pounds of materials at $8 per pound and a half hour of labor at $17 per hour. The overhead rate is 70% of direct labor.
Compute the budgeted amounts for 2008 for direct materials to be used, direct labor, and applied overhead.
Compute the standard cost of one unit of product.
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