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 $16.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $12.00 per bd. ft. standard quantity 17 bd. ft. Variable factory overhead: standard rate $2.40 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 $16.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $12.00 per bd. ft. standard quantity 17 bd. ft. Variable factory overhead: standard rate $2.40 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
Problem 1Q
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Standard Product Cost
Atlas Furniture Company manufactures designer home furniture. Atlas uses a
| Direct labor: | standard rate | $16.00 per hr. |
| standard time per unit | 3.5 hrs. | |
| Direct materials (oak): | standard price | $12.00 per bd. ft. |
| standard quantity | 17 bd. ft. | |
| Variable factory overhead: | standard rate | $2.40 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.
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