C&C Furniture Company manufactures unfinished oak furniture. C&C Furniture Compa

Question

C&C Furniture Company manufactures unfinished oak furniture. C&C Furniture Company 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                                   $20.00 per hour

Standard time per unit 4 hours

Direct Materials Standard price                                 $14.50 per bd.ft.

Standard quantity 18 bd. ft.

Variable factory Overhead: Standard rate                                   $2.40 per direct labor hour

Fixed Factory Overhead Standard rate                                   $1.10 per direct labor hour.

Determine the total standard cost per dining room table

Question 16 options:

$261.00

$347.50

$355.00

$341.00

$261.00

$347.50

$355.00

$341.00

Explanation / Answer

Calculation of total standard cost per dining room table:

Direct Materials (18 bd. ft. x $14.50 per bd.ft.) = $261.00
Direct Labor (4 hours x $20.00 per hour) = $80.00
Variable factory Overhead (4 hours x $2.40 per direct labor hour) = $9.60
Fixed Factory Overhead (4 hours x $1.10 per direct labor hour) = $4.40
Total standard cost per dining room table = $355.00

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