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Exercise 4-11A (Algo) How the allocation of fixed cost affects a pricing decision LO 4-3 Zachary Manufacturing Co. expects to make 30,200 chairs during the
Exercise 4-11A (Algo) How the allocation of fixed cost affects a pricing decision LO 4-3 Zachary Manufacturing Co. expects to make 30,200 chairs during the year 1 accounting period. The company made 4,700 chairs in January. Materials and labor costs for January were $16,100 and $25,000, respectively. Zachary produced 1,000 chairs in February Material and labor costs for February were $8,300 and $13,900, respectively. The company paid the $815,400 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Zachary desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced In January and February? (Round intermediate calculations and final answers to 2 decimal places.) January Price per unit February
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