Preparing a cost of Goods Sold Budget Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to produce 20,000 chairs next year and expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. Required: Prepare a cost of goods sold budget for Andrews Company. Andrews Company Cost of Goods Sold Budget For the Coming Year Direct materials $ 280,000 Direct labor X Variable overhead 45,600 Fixed overhead Total manufacturing cost $ Less: Ending inventory Cost of goods sold