Determine the standard cost per dining room table

Question

Wood Designs Company manufactures unfinished oak furniture. Wood Designs 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 $18.00 per hr. standard time per unit 2.0 hrs.

Direct materials (oak): standard price $15.00 per bd. ft. standard quantity 20.0 bd. ft.

Variable factory overhead: standard rate $2.75 per direct labor hr.

Fixed factory overhead: standard rate $1.25 per direct labor hr.

a. Determine the standard cost per dining room table.

	Direct Materials Variance		Cocoa		Sugar		Total
	Price variance:
	Actual price
	Standard price
	Variance
	Actual quantity (lbs.)
	Direct materials price variance¾(favorable) unfavorable
	Quantity variance:
	Actual quantity used (lbs.)
	Standard quantity used (lbs.)
	Variance (lbs.)
	Standard price
	Direct materials quantity variance¾(favorable) unfavorable
	Total direct materials cost variance¾(favorable) unfavorable
	Total direct materials cost variance:
	Actual cost
	Standard cost
	Total direct materials cost variance¾(favorable) unfavorable
	Supporting calculations:
	Standard quantity used of cocoa:		Dark Chocolate		Light Chocolate		Total
	Cases produced
	Standard amount per case (lbs.)
	Total
	Standard quantity used of sugar:
	Cases produced
	Standard amount per case (lbs.)
	Total