Okeke Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labour hours at $16 per direct labour hour. The variable overhead rate is $1.20 per direct labour hour and the fixed overhead rate is $1.60 per direct labour hour. Okeke expects to produce 20,000 chairs next year and expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
Prepare a cost of goods sold budget for Okeke Company.