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14. Edison, Inc. 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
14. Edison, Inc. 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 labor) and three indirect cost pools. These three cost pools represent three activity areas at the plant: Cost Pool Budgeted costs for Cost driver used Activity rate as Activity Measure Materials handling $200,000 Parts Cutting $2,160,000 Parts Assembly $2,000,000 Direct labor hours $25 2018 $0.25 $2.50 Two styles of chairs were produced in March, the executive chair and the chairman chair. Their quantities, direct material costs and the other data for March 2018 are as follows: Units produced Direct material Number of Direct labor costs parts hours Executive chair 5000 $600,000 100,000 7500 Chairman chair 100 $25,000 3,500 500 The direct labor rate is $20 per hour. Calculate the March 2019 total manufacturing costs and unit costs ofthe executive chair and the chairman chair (show your work!)
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