1.

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	$24.00 per hr.
	standard time per unit	4.00 hrs.
Direct materials (oak):	standard price	$11.50 per bd. ft.
	standard quantity	17 bd. ft.
Variable factory overhead:	standard rate	$2.40 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. $ per dining room table

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

2.

Direct Materials and Direct Labor Variances

At the beginning of June, Kimber Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$12,750
Direct labor	9,180
Total	$21,930

The standard materials price is $0.50 per pound. The standard direct labor rate is $9.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$12,000
Actual direct labor	8,600
Total	$20,600

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 15,500 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$
Direct labor time variance	$

3.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 12,000 hours of productive capacity in the department:

Variable overhead cost:
Indirect factory labor	$100,800
Power and light	3,600
Indirect materials	31,200
Total variable overhead cost		$135,600
Fixed overhead cost:
Supervisory salaries	$47,460
Depreciation of plant and equipment	29,830
Insurance and property taxes	18,980
Total fixed overhead cost		96,270
Total factory overhead cost		$231,870

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 10,000, 12,000, and 14,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours	10,000	12,000	14,000
Variable overhead cost:
Indirect factory labor	$	$	$
Power and light
Indirect materials
Total variable factory overhead	$	$	$
Fixed factory overhead cost:
Supervisory salaries	$	$	$
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead	$	$	$
Total factory overhead cost	$	$	$