Text: Standard Product Cost
Santa Rosa Furniture Company manufactures designer home furniture. Santa 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: $26.00 per hr.
Standard time per unit: 2.00 hrs.
Direct materials (oak):
Standard price: $11.00 per bd.ft.
Standard quantity: 16 bd.ft.
Variable factory overhead:
Standard rate: $2.40 per direct labor hr.
Fixed factory overhead:
Standard rate: $0.80 per direct labor hr.
a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $ per dining room table
b. A standard cost system provides Santa Rosa Furniture management a cost control tool using the principle of. Using this principle, cost deviations from standards can be investigated and corrected.
Direct Materials and Direct Labor Variances
At the beginning of June, Kimber Toy Company budgeted 13,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:
Direct materials: $19,500
Direct labor: $7,800
Total: $27,300
At the end of June, the actual direct materials and direct labor costs were as follows:
Actual direct materials: $17,900
Actual direct labor: $7,200
Total: $25,100
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 11,600 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit using a minus sign and an unfavorable variance as a positive number.
Direct materials quantity variance: $
Direct labor time variance:
