Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Standard Product Cost Sana Rosa Company manufactures unfinished home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead

Standard Product Cost

Sana Rosa Company manufactures unfinished 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 $24.00 per hr.
standard time per unit 4 hrs.
Direct materials (oak): standard price $11.00 per bd. ft.
standard quantity 15 bd. ft.
Variable factory overhead: standard rate $2.80 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 table

b. A standard cost system provides Sana Rosa management a cost control tool using the principle of management by exception . Using this principle, major cost deviations from standards can be investigated and corrected.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

Draft a proposal for a risk assessment exercise.

Answered: 1 week ago