Standard Direct Materials Cost per Unit

Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (4,250 bars) are as follows:

Ingredient	Quantity		Price
Cocoa	540	lbs.	$0.40		per lb.
Sugar	150	lbs.	$0.60		per lb.
Milk	120	gal.	$1.70		per gal.

Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $__per bar

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	$15.00 per hr.
	standard time per unit	4.00 hrs.
Direct materials (oak):	standard price	$12.50 per bd. ft.
	standard quantity	16 bd. ft.
Variable factory overhead:	standard rate	$2.40 per direct labor hr.
Fixed factory overhead:	standard rate	$0.80 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.