How do i calculated a planing budget?
Direct materials: 6 pounds at $9 per pound $ 54
Direct labor: 3 hours at $15 per hour 45
Variable overhead: 3 hours at $5 per hour 15

Total standard cost per unit $ 114

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,000 units and incurred the following costs:

a. Purchased 180,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.

b. Direct laborers worked 61,000 hours at a rate of $16 per hour.

c. Total variable manufacturing overhead for the month was $306,220.