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Question: standard product cost sana rosa company manufactures unfinished home furniture...

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Standard Product Cost

Sana Rosa Company manufactures unfinished 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.
standard time per unit 2 hrs.
Direct materials (oak): standard price $9.50 per bd. ft.
standard quantity 18 bd. ft.
Variable factory overhead: standard rate $2.80 per direct labor hr.
Fixed factory overhead: standard rate $1.20 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 Sana Rosa management a cost control tool using the principle of  . Using this principle,   cost deviations from standards can be investigated and corrected.

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