15 marks) Question 3 Furniture Centre(FC) is a Windhoek based company that manufactures office chairs. Using Advanced Manufacturing Technologies (AMT), the company produces three types of luxury office chairs namely the Classic (C), the luxury (L) and Premium Luxury (PL). FC operates two production departments: the forming department and the finishing department. The forming department does most of the sophisticated work and this department relies heavily on machines while the finishing department relies mostly on labour. been in the business for more than ten years and sales has been rising significantly over the roduct on the PL model of chairs. Currently, the FC has years thanks to their ability to offer a customised p pricing system is based on charging a mark-up of 30% on total production cost. The company operates an absorption system that is based either on machine hours or direct labour hours depending on how most of the work is being performed. The following information relates to FC's current period operations PL Selling price per chair Direct materials per chair Direct labour per chair Direct labour hours per chair Machine hours per chair Total chairs produced N$8 750 N$2 250 N$1 150 N$10 500 N$2 700 N$1 380 6 N$12 000 N$3 150 N$1 610 13 600 10 1 750 1 000 Forming N$ 8287 290 Finishing N$ 4 009 820 Total N$ 12 297 110 Production overhead costs Requirement 15 Calculate the Gross profit per unit for each of the three types of office chairs. End of Test Paper