Standard Product Cost Santa Clara Furniture Company manufactures designer home furniture. Santa Clara 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 $19.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $16.50 per bd. ft. standard quantity 27 bd. ft. Variable factory overhead: standard rate Fixed factory overhead: standard rate a. Determine the standard cost per dining room table. $3.90 per direct labor hr. $2.10 per direct labor hr. per dining room table b. A standard cost system provides the company's management a cost control tool using the principle of management by exception▾ principle, major cost deviations from standards can be investigated and corrected. ✔. Using this
Standard Product Cost Santa Clara Furniture Company manufactures designer home furniture. Santa Clara 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 $19.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $16.50 per bd. ft. standard quantity 27 bd. ft. Variable factory overhead: standard rate Fixed factory overhead: standard rate a. Determine the standard cost per dining room table. $3.90 per direct labor hr. $2.10 per direct labor hr. per dining room table b. A standard cost system provides the company's management a cost control tool using the principle of management by exception▾ principle, major cost deviations from standards can be investigated and corrected. ✔. Using this
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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