Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its products during its first year of operation.

Chairs

Desks

Total

Direct Materials

$ 4,000

$ 6,000

$ 10,000

Direct Labor

12,000

8,000

20,000

Also the company incurred $14,000 of employee benefits cost. Since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. Based on this information alone the total cost of making chairs is.

$16,000. $30,000. $24,400. None of the answers is correct.