Standard Product Cost Santa Clara Furniture Company manufactures designer home furniture. Santa Clara 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 $19.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $16.50 per bd. ft. standard quantity 27 bd. ft. Variable factory overhead: standard rate $3.90 per direct labor hr. Fixed factory overhead: standard rate $2.10 per direct labor hr. a. Determine the standard cost per dining room table. 528.5 X per dining room table Using this b. A standard cost system provides the company's management a cost control tool using the principle of management by exception principle, major cost deviations from standards can be investigated and corrected. Feedback Check My Work Remember the process discussed in chapter for calculating standard cost Review the benefits of standard cost systems