Question

                                                                          

               To build the chairs and tables, a machine was purchased and workers were hired. Part of the manufacturing process for both products is automated, and part of the manufacturing process for both products is done by hand.                                                        

                             

               The number of each product to be produced is as follows:                                                        

                                                                          

               Yearly Number Of Chairs To Be Produced              104,000                                            

               Yearly Number Of Tables To Be Produced              80,000                                

                                                                          

               It is determined that to produce each product, the following materials are needed:                                                           

	Per chair	Per table
Square feet of wood	27	127
Square feet of fabric	9	7
Square feet of foam	7	5

               Materials can be purchased for the following amounts:                                               

              

	Wood	Fabric	Foam
Purchase price per square foot	0.23	0.52	0.13

               It takes the following amounts of time to produce each product. Workers who produce each product are also paid the following hourly wage:                                               

	Chair	Table
Minutes to produce each product	10	25
Worker hourly wage	$17.00	$22.00

               It has been determined that the production process for both chairs and tables involves the following activities with their related activity drivers:                                                                                                       

Production activities	Activity Driver	Type
Machine setups	Number of setups	Variable
Materials moves	Number of materials moves	Variable
Machining	Machine Hours	Variable
Quality control	Hours of analysis	Fixed
Inspections	Number of inspections	Fixed

              

               It has been determined that each activity will require the following amounts of money and each product will consume the following amounts of each activity driver:                                                   

                                                           

Active drivers	Total dollars of each activity	chairs	Tables
Machine setups: number of setup	$55,000	72	47
Mater moves: number of material moves	$35,000	42	57
Machining: machine hours	$60,000	17,200	23,200
Quality Control: Hours of Analysis	$78,000	10,200	12,200
Inspections: number of inspections	$78,000	700	950

              

               1) Direct Materials Cost per Chair and Table                                                                                   

               2) Direct Labor Cost per Chair and Table                                             

               3) Factory Overhead Cost per Chair and Table                                                  

               4) Total Cost Per Chair and Table                                                           

               5) Variable Cost per Chairs and Table                                                   

               6) Fixed Cost per Chair and Table             

Answer 1