Question:
Carolina Furniture Company manufactures unfinished oak furniture. Carolina uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:
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Direct labor:
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standard rate
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$17.00 per hour
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standard time per unit
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3 hours
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Direct materials (oak):
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standard price
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$8.60 per board foot
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standard quantity
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16 board feet
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Variable factory overhead:
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standard rate
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$2.60 per direct labor hour
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Fixed factory overhead:
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standard rate
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$1.20 per direct labor hour
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Determine the standard cost per dining room table.