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 tabl
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 tabl
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Standard Product Cost
Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a
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.
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