Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct
Question:
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 | $21.00 per hr. |
| standard time per unit | 2.50 hrs. |
Direct materials (oak): | standard price | $11.50 per bd. ft. |
| standard quantity | 17 bd. ft. |
Variable factory overhead: | standard rate | $3.20 per direct labor hr. |
Fixed factory overhead: | standard rate | $0.80 per direct labor hr. |
a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.
$per table
b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of . Using this principle, cost deviations from standards can be investigated and corrected.
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac