Cumberland Furniture Company manufactures unfinished oak furniture. Cumberland u

Question

Cumberland Furniture Company manufactures unfinished oak furniture. Cumberland usees 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                   $16.00 per hour
                                                 standard time per unit      1.8 hrs.
Direct materials:                        standard price                  $12.50 per bd. ft.
                                                 standard quantity             17 bd. ft.
Variable factory overhead:          standard rate                   $2.40 per direct labor hr.
Fixed factory overhead:              standard rate                   $1.10 per direct labor hr.

Determine the standard cost per dining room table.

Explanation / Answer

Math for Direct Materials Cost is incorrect which throws standard cost per dining room table off.

Should be...

Direct Materials Cost = $12.50 * 17 = $212.50

Standard Cost per dining room table = $28.80 + 212.50 + 4.32 + 1.98 = $247.60

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