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 $21.00 per hr.   standard time per unit 2 hrs. Direct materials (oak): standard price $10.50 per bd. ft.   standard quantity 18 bd. ft. Variable factory overhead: standard rate $3.20 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $21.00 per hr.
  standard time per unit 2 hrs.
Direct materials (oak): standard price $10.50 per bd. ft.
  standard quantity 18 bd. ft.
Variable factory overhead: standard rate $3.20 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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