Standard Product Cost

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 exceptionmanagement by exception

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

majorminormajor

cost deviations from standards can be investigated and corrected.

Standard Product Cost 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 a. Determine the standard cost per dining room table. Round to two decimal places. $ per table b. A standard cost system provides the company's management a cost control tool using the principle of ! . Using this principle, cost deviations from standards can be investigated and corrected. Feedback Check My Work Remember the process discussed in chapter for caling standard cost. Review the benefits of standard cost systems