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:
Direct labor: |
standard rate |
$17.00 per hour |
|
standard time per unit |
3 hours |
Direct materials (oak): |
standard price |
$8.60 per board foot |
|
standard quantity |
16 board feet |
Variable factory overhead: |
standard rate |
$2.60 per direct labor hour |
Fixed factory overhead: |
standard rate |
$1.20 per direct labor hour |
Determine the standard cost per dining room table.