1. Uratex company manufactures a variety of classroom chairs. Its job-costing system

uses an activity-based approach. There are two direct-cost categories (direct materials

and direct labor) and there indirect cost pools. The cost pools represent three activity

areas at the plant.

Manufacturing

Budgeted

Cost Driver used

Cost-allocation

Activity Area

Cost for 2013

as Allocation Base

rate

Materials Handling

P200,00

Parts

P0.25

Cutting

2,000,000

Parts

2.50

Assembly

2,000,000

direct labor hours

25,000

Two styles of chairs were produced on March, the high school chair, and the college

chair. Their quantities, direct material costs, and other data for March 2013 are as

follows:

Direct

Direct

Units

Materials

Number

Manufacturing

Produced

Costs

of Parts

Labor hours

High school chair

5,000

P600,000

100,000

7,500

College chair

100

25,000

3,500

500

The direct labor rate is P20 per hour. Assume no begging or ending inventory.

What are the unit cost of the high school chair and college chair?