Standard Product CostDesigner Furniture Company manufactures designer home furniture. Designer Furniture uses a standard cost system. The direct labor, direct materials, and factory overhead standards for a finished dining room table are as follows:Line Item DescriptionClassificationValueDirect labor:standard rate$20.00 per hr.Direct labor:standard time per unit3.50 hrs.Direct materials (oak):standard price$10.00 per bd. ft.Direct materials (oak):standard quantity17 bd. ft.Variable factory overhead:standard rate$2.40 per direct labor hr.Fixed factory overhead:standard rate$1.20 per direct labor hr.a. Determine the standard cost per dining room table. Round to two decimal places.fill in the blank 1 of 1$ per table

Standard Cost Per Dining Table Includes The Material Cost, Labor Cost, Variable Overhead And Fixed…

Answered: Designer Furniture Company manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Standard Product Cost

Designer Furniture Company manufactures designer home furniture. Designer Furniture uses a standard cost system. The direct labor, direct materials, and factory overhead standards for a finished dining room table are as follows:

Line Item Description	Classification	Value
Direct labor:	standard rate	$20.00 per hr.
Direct labor:	standard time per unit	3.50 hrs.
Direct materials (oak):	standard price	$10.00 per bd. ft.
Direct materials (oak):	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. Round to two decimal places.
fill in the blank 1 of 1$ per table

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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