Garden Equipment Itd manufactures two products, garden seats and greenhouse seats, using processes which are very similar. The factory facilities are split into two departments: (1) cutting and turning, and (2) assembly and finishing. The prime cost for each of the two products is as follows. Greenhouse seat (prime cost per unit) Direct materials Direct labour - Cutting and turning department (1 hour @ 6.00 per hour) - Assembly and finishing department (2 hours @ 7.00 per hour) Prime cost per unit Note: - 12.00 6.00 14.00 32.00 In the cutting and turning department 2 machine hours are required for each greenhouse seat. In the assembly and finishing department 0.5 of a machine hour is required for each greenhouse seat. Garden seat (prime cost per unit) Direct materials Direct labour - Cutting and turning department (1.50 hours @ 6.00 per hour) - Assembly and finishing department (3 hours @ 7.00 per hour) Prime cost per unit Note: - 15.00 9.00 21.00 45.00 In the cutting and turning department 2.5 machine hours are required for each garden seat. - In the assembly and finishing department 0.5 of a machine hour is required for each garden seat. The totals anticipated for 2021 for machine hours and direct labour hours by department are as follows. Machine hours Cutting and turning 22,500 Assembly and finishing 5,000 Total 27,500 Direct labour hours 12,500 25,000 37,500 The greenhouse seats currently sell to retailers for 85 each, and the garden seats sell for 103. The company plans to produce and sell 5,000 units of each product in 2021.