Luxury Furniture is a company that make two types of dining tables: Standard and Family Luxe. There are two types of direct materials: Pine and Mahogany woods. Direct mm 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 labourhours for manufacturing operations overhead costs and setup labour hours for machine setup overhead costs. Nonmanufacturing costs consist of product design, marketing, and distribution costs:J .J The following data are available for the 2021 budget:J n Direct Materials Rate.J +3 " $11 per metre square (13113)\" $15 per metre square (rie Direct Manufacturing labour rater:l $28 per 1101.110 '3 n . a .3 Quantity of Matelial and Labour for Each ProductJ :1 Standard Tahlee a p _ Mahogany 9.3. _ p Direct Material Laboun:l 5 hourseI T hourseI .n Products+ Standard Table+ Family-Luxe Table+ Expected Sales for 2021 (in units)+ 72,000 23,0004+ Selling Price+ $ 1,100 1,3504+ Target ending inventory in units+ 13,000 7504+ Beginning inventory in units- 2,5004 3704+ Beginning inventory in dollars+ $ 525,0004 $ 348,0004+ Direct Materials Inventory+ Pine+ Mahogany+ Beginning inventory+ 78,000 m- 50,000 m2+ Target ending inventory+ 85,000 m- 22,000 m2+ Manufacturing Operations Overhead Costs+ Variable manufacturing operation overhead costs (per direct manufacturing labour-hour)+ Supplies + $ 5.75+ . Indirect manufacturing labour+ 6.10 Power (support department costs)+ 6.75+ Maintenance (support department costs)+ 3.25+ Total variable manufacturing operation overhead cost+ 21.85+ Fixed manufacturing operation overhead costs+ Depreciation+ 1,380,0004+ Supervision+ 445,0004 Power (support department costs)+ 675,000+ . Maintenance (support department costs)+ 450,0004 Total fixed manufacturing operation overhead cost+ $ 2,950,000Machine Setup Overhead Costs + Variable machine setup overhead costs (per setup labour-hour)+ Supplies+ $ 234+7 Indirect manufacturing labour+ 51+ . Power (support department)+ 12+ Total variable machine setup overhead cost + $ 86+ Fixed machine setup overhead costs+ Depreciation+ $ 520,0004+ Supervision+ 990,800+ . Power (Support department cost)+ 23,800 Total fixed machine setup overhead cost+ $ 1,534,6004 0.2 hour of setup labour-hour is allocated to make one unit of Standard Table and 0.3 hour of + setup labour-hour is allocated for Family-Luxe Table. Non-manufacturing Costs+ Product Design Cost (fixed)+ 1,567,0004+ Marketing Cost+ ++ Fixed marketing cost+ $ 1, 120,0004 . Variable marketing cost is equals the 5.5% of revenues Distribution Cost+ Fixed distribution cost+ $ 1,680,00047 Variable distribution cost is $2 per cubic metre of table sold and shipped+ . Standard Table 20 cubic metre pertable sold and shipped-' Family-Luxe Table 25 cubic metre pertable sold and shipped+
