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Nord Production produces a product that is processed in two departments. Budgeted sales per month are 2000 units, a total of 24000 units per year. Budgeted sales price is USD 2390 per unit. It takes 4 kg of material to produce one unit. The material price is USD 100 per kg. Production takes 2 hours in sections 1 and 3. hours in department 2. The hourly wage in department 1 is USD 150 and in department 2 USD 160 The indirect costs in departments 1 and 2 are calculated based on the product based on hours used in the departments. For sales and administration costs, USD 250 is added in fixed indirect costs per. sold product.Budgeted indirect costs for the whole year are: 

dep 1 dep 2 sales and admin

Variable 4320000 5760000. 0

fixed 3840000 4320000 6000000

total 8160000 10080000 6000000

Inventories of work in progress and finished goods at the beginning and end of January (except UB FV) were as follows:

IB goods in work 100

UB goods in work 150

IB finished goods 150

UB finished goods ?

In January, 2050 units were put into production in department 1. Work in progress has been completed in department 1, but not started in department 2. 60% of direct material is added at start-up in department 1, while the rest is added in department 2. 2100 units were sold in January at a price of USD 2400 per unit.

Real costs in January:

direct material costs 8200 kg usd 811 000

direct payroll dep 1 4150 hours usd 626 650

direct payroll dep 2 5980 hours usd 968 760

indirect variable costs dep 1 usd 373 500

indirect fixed costs dep 1 usd 315 400

indirect variable costs dep 2 usd 484 380

indirect fixed costs dep 2 usd 370 760

fixed sales and admin costs usd 510 000

Question:

Calculate the standard rates of the direct costs in sections 1 and 2, and set up the standard calculation for one unit of the product.

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