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Designer Furniture Company manufactures designer home furniture. Designer Furniture uses a standard cost system. The direct labor, direct materials, and factory overhead standards for a

Designer Furniture Company manufactures designer home furniture. Designer Furniture uses a standard cost system. The direct labor, direct materials, and factory overhead standards for a finished dining room table are as follows:

Line Item Description Classification Value
Direct labor: standard rate $30.00 per hr.
Direct labor: standard time per unit 5.0 hrs.
Direct materials (oak): standard price $8.00 per bd. ft.
Direct materials (oak): standard quantity 20 bd. ft.
Variable factory overhead: standard rate $0.75 per direct labor hr.
Fixed factory overhead: standard rate $1.15 per direct labor hr.

a. Determine the standard cost per dining room table. Round to two decimal places. fill in the blank 1 of 1$ per table

b. A standard cost system provides the company's management a cost control tool using the principle of fill in the blank 1 of 2

cost controlmanagement by exception

. Using this principle, fill in the blank 2 of 2

majorminor

cost deviations from standards can be investigated and corrected.

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