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Furniture Specialties is a company that makes two types of dining tables: Simple and Futuristic. There are two types of direct materials: Pine and Mahogany

Furniture Specialties is a company that makes two types of dining tables: Simple and Futuristic. There are two types of direct materials: Pine and Mahogany woods. Direct manufacturing labour workers are hired on an hourly basis; no overtime is worked. In terms of manufacturing overhead costs, there are two manufacturing overhead cost pools and two cost drivers. The two manufacturing overhead cost pools are manufacturing operations overhead and machine setup overhead. The cost drivers for manufacturing overhead are: direct manufacturing labour-hours for manufacturing operations overhead cost and setup labour-hours for machine setup overhead cost. Nonmanufacturing costs consist of product design, marketing, and distribution costs.

The following data are available for the 2019 budget:

Direct Materials Rate

Pine $10 per meter square (m2)

Mahogany $15 per meter square (m2)

Direct Manufacturing labour rate $20 per hour

Quantity of Material for Each Product

Simple Table Futuristic Table

Pine 12 m2 15 m2

Mahogany 7 m2 9 m2

Direct Material Labour 5 hour 10 hours

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\f Simple Table? Futuristic TableiP (3 Expected Sales for 2019 (in units)\" 52,000 18,000 '3 Beginning Inventory\" 80,000 1112 Target endmg 1nventory9 90,000 m2 (J (J P \" Data on Manufacturlng Overhead Cost\" Manufacturing Operations Overhead cost (capacity of 500 000 direct manufacturing labourhours)\" Variable manufactnrmg operation overhead costs (per direct manufacturing labour-hours)\" (J Supplies (J Indirect manufacturing 1abour

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