Atlas Furniture Company manufactures designer home furniture. Atlas 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 $25.00 per hr. standard time per unit 3 hrs. Direct materials (oak): standard price $10.50 per bd. ft. standard quantity 20 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 Atlas Furniture Company's management a cost control tool using the principle of Using this principle, cost deviations from standards can be investigated and corrected.
Atlas Furniture Company manufactures designer home furniture. Atlas 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 $25.00 per hr. standard time per unit 3 hrs. Direct materials (oak): standard price $10.50 per bd. ft. standard quantity 20 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 Atlas Furniture Company's management a cost control tool using the principle of Using this principle, cost deviations from standards can be investigated and corrected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Standard Product Cost
Atlas Furniture Company manufactures designer home furniture. Atlas 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
$25.00 per hr.
standard time per unit
3 hrs.
Direct materials (oak):
standard price
$10.50 per bd. ft.
standard quantity
20 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
. Using this principle,
b. A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of
cost deviations from standards can be investigated and corrected.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6462e92b-6e3a-45f5-8e98-1d05dd2e9c72%2Ff89e18a4-a00d-40e2-b154-b2ab4ca84cec%2F67opr0b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Standard Product Cost
Atlas Furniture Company manufactures designer home furniture. Atlas 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
$25.00 per hr.
standard time per unit
3 hrs.
Direct materials (oak):
standard price
$10.50 per bd. ft.
standard quantity
20 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
. Using this principle,
b. A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of
cost deviations from standards can be investigated and corrected.
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