Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses

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:

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.

Direct labor: standard rate $21.00 per hr. standard time per unit 2.50 hrs. Direct materials (oak): standard price $12.50 per bd. ft. standard quantity 16 bd. ft. Variable factory overhead: standard rate $2.40 per direct labor hr. Fixed factory overhead: standard rate $1.20 per direct labor hr.

Explanation / Answer

Just multiplied Cost per unit *rate per unit

Standard Cost Direct Labour 52.5 Material 200 Variable FOH 6 Fixed factory OH 3 Standard Cost 261.5

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