Activity-based job costing. The Schramka Company manufactures a variety of prestige boardroom chairs. Its job-costing system was designed using an activity-based approach.

There are two direct-cost categories (direct materials and direct manufacturing labour)

and three indirect-cost pools. The three cost pools represent three activity areas at the plant:

Manufacturing Activity Area Budgeted Costs for 2007 Cost Driver Used as Allocation Base Cost-Allocation Rate Materials handling $ 240,000 Parts $ 0.30 Cutting 2,592,000 Parts 3.00 ACTIVITY-BASED COSTING Assembly 2,400,000 Direct manufacturing AND ACTIVITY-BASED labour-hours 30.00 Two styles of chairs were produced in March, the executive chair and the chairperson chair.
Their quantities, direct material costs, and other data for March 2007 are as follows:
Units Produced Direct Material Costs Number of Parts Direct Manufacturing Labour-Hours Executive chair 5,000 $720,000 100,000 7,500 Chairperson chair 100 30,000 3,500 500 The direct manufacturing labour rate is $24 per hour. Assume no beginning or ending inventory.
Required 1. Compute the March 2007 total manufacturing costs and unit costs ofthe executive chair and the chairperson chair.
2. Suppose that the upstream activities to manufacturing (R&D and design) and the down¬
stream activities (marketing, distribution, and customer service) were analyzed. The unit costs in 2007 were budgeted as follows:
Executive chair Chairperson chair Upstream Downstream Activities Activities $ 72.00 $132.00 175.20 283.20 Compute the full product costs per unit of each line of chairs. (Full product costs are the sum of the costs in all business function areas.)