Question: IKEA uses standard costs to control materials costs. The standards for bookshelves call for 25 feet of lumber for each finished unit produced. The standard

IKEA uses standard costs to control materials costs. The standards for bookshelves call for 25 feet of lumber for each finished unit produced. The standard cost per foot of lumber is $1.50. During May, 10,000 finished units were manufactured, 28,000 feet of lumber were used. The price paid for lumber was $1.40 per foot. The price per foot was below the standard price. Does this appear to have been a good deal for the lumber, based on your answers? Why or why not?

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