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: standard rate Direct materials (oak): standard time per unit standard price standard quantity standard rate standard rate $26.00 per hr. 2.00 hrs. $11.50 per bd. ft. 16 bd. ft. Variable factory overhead: Fixed factory overhead: $3.20 per direct labor hr. $1.20 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 . Using this principle, cost deviations from standards can be investigated and corrected. Direct Labor Variances The following data relate to labor cost for production of 6,600 cellular telephones: Actual: 4,490 hrs. at $15.50 Standard: 4,420 hrs. at $15.80 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a Thus, the actual time required was labor rate than planned. The lower level of experience or training may have resulted in efficient performance. than standard.