Standard Product Cost Sana Rosa Company manufactures unfinished home furniture.

Question

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:

a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.
$per table

Direct labor: standard rate $22.00 per hr. standard time per unit 3.5 hrs. Direct materials (oak): standard price $12.00 per bd. ft. standard quantity 20 bd. ft. Variable factory overhead: standard rate $2.40 per direct labor hr. Fixed factory overhead: standard rate $1.20 per direct labor hr.

Explanation / Answer

a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.

Direct labour (22*3.5) 77 Direct material (12*20) 240 Variable factory overhead (2.4*3.5) 8.40 Fixed factory overhead (1.2*3.5) 4.20 Total standard cost per dinning room table 329.60

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