Sana Rosa Furniture Company manufactures designer 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 $16.00 per hr standard time per unit 3.50 hrs. Direct materials (oak): standard price $11.50 per bd. ft. standard quantity 17 bd. ft. Variable factory overhead: standard rate Fixed factory overhead: standard rate Determine the standard cost per dining room table. $2.80 per direct labor hr. $1.20 per direct labor hr.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2E
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Sana Rosa Furniture Company manufactures designer 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
$16.00 per hr
standard time per unit 3.50 hrs.
Direct materials (oak):
standard price
$11.50 per bd. ft.
standard quantity
17 bd. ft.
Variable factory overhead:
standard rate
Fixed factory overhead:
standard rate
Determine the standard cost per dining room table.
$2.80 per direct labor hr.
$1.20 per direct labor hr.
Transcribed Image Text:Sana Rosa Furniture Company manufactures designer 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 $16.00 per hr standard time per unit 3.50 hrs. Direct materials (oak): standard price $11.50 per bd. ft. standard quantity 17 bd. ft. Variable factory overhead: standard rate Fixed factory overhead: standard rate Determine the standard cost per dining room table. $2.80 per direct labor hr. $1.20 per direct labor hr.
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