# Atlas Furniture Company manufactures designer home furniture. Atlas 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 unit2 hrs.Direct materials (oak):standard price\$10.50 per bd. ft. standard quantity18 bd. ft.Variable factory overhead:standard rate\$3.20 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.\$per tableb.  A standard cost system provides Atlas Furniture Company’s management a cost control tool using the principle of  . Using this principle,   cost deviations from standards can be investigated and corrected.

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Atlas Furniture Company manufactures designer home furniture. Atlas 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 hrs. Direct materials (oak): standard price \$10.50 per bd. ft. standard quantity 18 bd. ft. Variable factory overhead: standard rate \$3.20 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.
\$per table

b.  A standard cost system provides Atlas Furniture Company’s management a cost control tool using the principle of  . Using this principle,   cost deviations from standards can be investigated and corrected.

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Step 1

Standard Cost:

A standard cost is an estimated or a pre-determined cost of performing an operation or manufacturing a product or rendering a service. It is assumed to be a form of traget cost.

Step 2

Requirement a:

Compute the standard cost per dining room table of...

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