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Exercise - Standard product cost
Hickory Furniture Company manufactures unfinished oak furniture. Hickory 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 hour
standard time per unit 2.5 hours
Direct materials (oak):
standard price $8.00 per board foot
standard quantity 17 board feet
Variable factory overhead:
standard rate $3.60 per direct labor hour
Fixed factory overhead:
standard rate $1.20 per direct labor hour
Determine the standard cost per dining room table. Enter the answer to the nearest cent.
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