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: Direct labor: Direct materials (oak): standard rate standard time per unit standard price standard quantity Variable factory overhead: standard rate Fixed factory overhead: standard rate $16.00 per hr. 4.00 hrs. $10.00 per bd. ft. 16 bd. ft. $2.80 per direct labor hr. $0.80 per direct labor hr. 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 management by exception. Using this principle, major deviations from standards can be investigated and corrected. cost Feedback Check My Work Remember the process discussed in chapter for calculating standard cost. Review the benefits of standard cost systems.