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Question 2 (50 points) SSU Company makes two types of chairs, a hand-built lounge chair and a folding beach chair. SSU Company has begun changing

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Question 2 (50 points) SSU Company makes two types of chairs, a hand-built lounge chair and a folding beach chair. SSU Company has begun changing to an activity based costing system. The company has reported the following results from the first stage cost allocations for year's production: Activity Estimated Overhead Cost Cost drivers for each product (Est. and actual activity levels are same.) Lounge Chairs Beach Chairs 15,000 DLH 5,000 DLH 4,000 Setups 1,000 Setups Labor related Machine setups Total $200,000 $800,000 $1,000,000 Required: If the company is using ABC system, what is the overhead cost for each product? (You must show your work, otherwise No Point.)

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