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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	$18.00 per hr.
	standard time per unit	3.00 hrs.
Direct materials (oak):	standard price	$12.00 per bd. ft.
	standard quantity	20 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. $____ 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.