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Please answer 1) determine the cost of producing a unit of the deluxe and relax desk chairs using a plantwide cost driver rate based on

Please answer 1) determine the cost of producing a unit of the deluxe and relax desk chairs using a plantwide cost driver rate based on direct labour hours 2) cost per desk chair using activity based costing by using the following information:

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Aerodec Inc., manufactures and sells two types of wooden deck chairs: Deluxe and Relax. Annual sales in units, direct labour hours per unit, and total direct labour hours per year are as follows: TOTAL HOURS Deluxe deck chair: 4,000 units x 6 Direct Labour Hours (DLHs) per unit = 24,000 DLHs Relax deck chair: 11,500 units x 4 DLHs per unit = 46,000 DLHs TOTAL DIRECT LABOUR HOURS 70,000 Costs for materials and labour for one unit of each product are given below: Deluxe Relax Direct materials $30 $24 Direct labour (at $10 per hour) $60 $40 Manufacturing overhead costs total $700,000 each year. The breakdown of these costs among the company's six activity cost pools is given below. Activity Category Cost Driver Estimated Consumption Consumption overhead cost of cost driver of cost driver (Deluxe) (Relax) Labour related Direct labour $60,000 24,000 46,000 hours Machine setups Number of $120,000 4,000 1,000 setups Parts Number of $140,000 50 30 administration parts Production orders Number of $60,000 200 200 orders Material receipts Number of $80,000 300 200 receipts General factory Machine $240,000 12,000 8,000 hours

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