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Standard Product Cost Sana Rosa Furniture Company manufactures designer home furniture
Standard Product Cost
Sana Rosa Furniture Company manufactures designer 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 | $21.00 per hr. |
| standard time per unit | 2.50 hrs. | |
| Direct materials (oak): | standard price | $10.00 per bd. ft. |
| standard quantity | 18 bd. ft. | |
| Variable factory overhead: | standard rate | $2.80 per direct labor hr. |
| Fixed factory overhead: | standard rate | $1.20 per direct labor hr. |
a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.
Expert Solution
a.
| Standard quantity/hours | Standard price/rate | ||
| Direct materials | 18 | $10 | $180 |
| Direct labor | 2.50 | 21 | 52.5 |
| Variable factory overhead | 2.50 | 2.80 | 7 |
| Fixed factory overhead | 2.50 | 1.20 | 3 |
| Total Standard cost per dining room table | $242.5 |
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