Standard Product CostSana 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$20.00 per hr. standard time per unit3.00 hrs.Direct materials (oak):standard price$10.00 per bd. ft. standard quantity18 bd. ft.Variable factory overhead:standard rate$2.80 per direct labor hr.Fixed factory overhead:standard rate$1.20 per direct labor hr.a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.$fill in the blank 1 per dining room tableb. A standard cost system provides Rosa Furniture management a cost control tool using the principle of cost control . Using this principle, minor cost deviations from standards can be investigated and corrected.

Standard cost is an estimated cost determined by the company for the production of goods and…

Answered: Standard Product Cost Sana Rosa…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Standard Product Cost

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	$20.00 per hr.
	standard time per unit	3.00 hrs.
Direct materials (oak):	standard price	$10.00 per bd. ft.
	standard quantity	18 bd. ft.
Variable factory overhead:	standard rate	$2.80 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.
$fill in the blank 1 per dining room table

b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of cost control . Using this principle, minor cost deviations from standards can be investigated and corrected.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions