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Muskoka Comforts makes chairs. The cost to manufacture an unfinished chair is: Direct materials $ 8.40 Direct labour 7.20 Variable manufacturing overhead 4.80 Fixed manufacturing

Muskoka Comforts makes chairs. The cost to manufacture an unfinished chair is:

Direct materials $ 8.40

Direct labour 7.20

Variable manufacturing overhead 4.80

Fixed manufacturing overhead 3.60

Total manufacturing costs $24.00

The sales price for an unfinished chair is $55.00 and the sales price for a finished chair is $65.00. Muskoka Comfort would incur an additional $1.60 for direct materials, $1.80 for direct labour, and $1.20 for variable manufacturing overhead to finish the chairs.

Instructions: Should the company sell the unfinished product or process further?

*inserting a table may help you here

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