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