Standard product cost OBJ. 2 Wood You Lie To Me Furniture Company manufactures designer home furniture. Wood You Lie To Me 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 $24.00 per hr.

standard time per unit 4.0 hrs.

Direct materials (oak): standard price $22.00 per bd. ft.

standard quantity 32 bd. ft.

Variable factory overhead: standard rate $3.00 per direct labor hr.

Fixed factory overhead: standard rate $2.00 per direct labor hr.

a. Determine the standard cost per dining room table.

b. Why would Wood You Lie To Me Furniture Company use a standard cost system?