Question

Standard Product Cost Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $22.00 per hr. 3.50 hrs standard time per unit Direct materials (oak) $9.50 per bd. ft standard price standard quantity 16 bd. ft standard rate Variable factory overhead: $3.20 per direct labor hr. standard rate $1.20 per direct labor hr Fixed factory overhead: a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. per dining room table .Using this b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of principle, cost deviations from standards can be investigated and corrected.

Answer 1

Standard cost per dining doom table Direct labor (3.5 hrs & $ 77 cost $22/hr $152 Direct materials [16 bd.ft x $9.5) $11.2 variable factory overheads ($3.2 x *3.5) Fixed factory overheads = $ 4.2 CoQ x 3.5) standard cost per unit $2uu.4 b) A standard cost system provides Rosa furniture management a cost control tool using the principle of 'BUDGETING". Using this' poütüple, 'ACTUAL" cost deviations from Standards can be investigated and connected