1. A company manufactures two products, chairs and tables. Data regarding the two product is as follows:

Direct labor hours per unit Annual production

Chairs .50 hours 5,000 units

Tables .80 hours 4,000 units

Chairs require $40.00 in direct materials per unit and tables require $50 per unit. The direct labor wage rate is $30 per hour. The activity-based costing system has the following activity cost pools:

Activity cost pool Activity Measure Estimated overhead cost Activity

Chairs Tables

Machine set ups Number of set ups $150,000 1,000 1,500

Special processing Machine hours $100,000 180 220

Compute the unit product cost for chairs rounded to the nearest cent