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A furniture manufacturing company produces three types of chairs: Standard, Deluxe, and Executive. Each chair type requires different amounts of direct labor and materials. The

A furniture manufacturing company produces three types of chairs: Standard, Deluxe, and Executive. Each chair type requires different amounts of direct labor and materials. The company's direct labor rates are $20 per hour. The direct labor hours and material costs for each chair type are as follows:

  • Standard Chair: Requires 3 hours of direct labor and $50 worth of materials per unit.
  • Deluxe Chair: Requires 5 hours of direct labor and $80 worth of materials per unit.
  • Executive Chair: Requires 8 hours of direct labor and $120 worth of materials per unit.

The company expects to produce the following quantities of each chair type this month:

  • Standard Chairs: 500 units
  • Deluxe Chairs: 300 units
  • Executive Chairs: 200 units

Now, considering the above information, answer the following questions:

  1. What is the total direct labor cost for producing all three types of chairs this month?
  2. How much will the company spend on materials for producing Deluxe Chairs?
  3. If the company operates 8 hours a day for 25 days this month, how many total direct labor hours will be worked?
  4. What is the average direct labor cost per unit for Executive Chairs?
  5. If the company wants to minimize direct labor costs while meeting the demand for each chair type, which chair type should it focus on producing more efficiently?

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