Peterson Pottery started out as a two$-$man operation for ceramic bathroom fixtures $($sinks$,$ toilets, and bathtubs$).$ Eventually, it grew to $20$ master potters, and fixtures has become known for their distinctive customer features, high quality, and long life. Clive Peterson, the owner felt that he has expanded to a point that he needed to institute a formal accounting control system. The insistence of his banker that he get a "real" management accounting system in place was also compelling. As a result, Peterson hired a formally trained management accountant who began working with his most experienced master potters to design cost standards. After some research, Peterson's accounting arrived at the following cost standards for a toilet $($note that manufacturing overhead is allocated based on direct labor hours$)$:

$\backslash$table$[[$Direct materials:,$],[$Raw clay,$25lbs$$$0\mathrm{.}95$ per $lb=$$$23\mathrm{.}75$