Loomis Company uses both standards and budgets. The company estimates that production for the year will be 250,000 units of Product Fast. To produce these units of Product Fast, the company expects to spend $600,000 for materials and $800,000 for labor.
Instructions
Compute the estimates for (a) a standard cost and (b) a budgeted cost.

Question

Quizplus · Accepted Answer

The Answer of Loomis Company uses both standards and budgets. The company estimates that production for the year will be 250,000 units of Product Fast. To produce these units of Product Fast, the company expects to spend $600,000 for materials and $800,000 for labor.
Instructions
Compute the estimates for (a) a standard cost and (b) a budgeted cost.

Loomis Company Uses Both Standards and Budgets