standard Product Cost Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overh for an unfinished dining room table are as follows: Direct labor: standard rate $15.00 per hr. standard time per unit 4 hrs. Direct materials (oak): standard price $12.50 per bd. ft. standard quantity 15 bd. ft. Variable factory overhead: standard rate $3.20 per direct labor hr. Fixed factory overhead: standard rate $0.80 per direct labor hr. a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. per table . A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of management by exception this principle, major ✔ cost deviations from standards can be investigated and corrected.
standard Product Cost Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overh for an unfinished dining room table are as follows: Direct labor: standard rate $15.00 per hr. standard time per unit 4 hrs. Direct materials (oak): standard price $12.50 per bd. ft. standard quantity 15 bd. ft. Variable factory overhead: standard rate $3.20 per direct labor hr. Fixed factory overhead: standard rate $0.80 per direct labor hr. a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. per table . A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of management by exception this principle, major ✔ cost deviations from standards can be investigated and corrected.
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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![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
$15.00 per hr.
standard time per unit
4 hrs.
Direct materials (oak):
standard price
$12.50 per bd. ft.
standard quantity
15 bd. ft.
Variable factory overhead:
standard rate
$3.20 per direct labor hr.
Fixed factory overhead:
standard rate
$0.80 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
b. A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of management by exception
this principle, major
cost deviations from standards can be investigated and corrected.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb372ec47-ee36-4baa-b365-e8b0e97a6c99%2F1aca8b82-0299-47d8-bf99-ecb09f785335%2Fik1hw4_processed.png&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
$15.00 per hr.
standard time per unit
4 hrs.
Direct materials (oak):
standard price
$12.50 per bd. ft.
standard quantity
15 bd. ft.
Variable factory overhead:
standard rate
$3.20 per direct labor hr.
Fixed factory overhead:
standard rate
$0.80 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
b. A standard cost system provides Atlas Furniture Company's management a cost control tool using the principle of management by exception
this principle, major
cost deviations from standards can be investigated and corrected.
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