Standard Product Cost

Atlas Furniture Company manufactures designer home furniture. Atlas 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 $$26\mathrm{.}00$ per hr$.$

standard time per unit $4$ hrs$.$

Direct materials $($oak$)$: standard price $$12\mathrm{.}00$ per bd$.$ ft$.$

standard quantity $17$ bd$.$ ft$.$

Variable factory overhead: standard rate $$2\mathrm{.}40$ per direct labor hr$.$

Fixed factory overhead: standard rate $$0\mathrm{.}80$ per direct labor hr$.$

a$.$ Determine the standard cost per dining room table. If required, round your answer to two decimal places.

$fill in the blank $1$

per table

b$.$ A standard cost system provides Atlas Furniture Company$$s management a cost control tool using the principle of $($cost control$/$management by exception$)$

$.$ Using this principle, $($major$/$minor$)$

cost deviations from standards can be investigated and corrected.