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4. ABC Problem The River Company manufactures a variety of prestige boardroom chairs. Its job-costing system uses an activity based approach. There are two direct cost categories (direct materials and direct labour) and three indirect cost pools. The cost pools represent the following three activities. 201] allocation base Materials handling $200,000 $0.25 Cuttin; 2,000,000 Parts 2.50 2,000,000 Direct labour hours 25.00 Two styles of chairs were produced in February, 2011, the executive char and the chairman chair. Their quantities, direct material costs, and other data for February are as follows: Units produced Direct material Number of parts Direct labour costs hours $600,000 100.000 Chairman Chair The upstream activities to manufacturing (R&D and design) and downstream activities (marketing, distribution, and customer serve) are analyzed, and the unit costs for these activities are: Executive Chair $60 $1 10 Chairman Chair 146 236 The direct manufacturing labour rate is $20 per hour. Assume no beginning or ending inventory. Required: 1) Compute the unit manufacturing costs of the executive chair and the chairman chair. 2) The company sells the executive chair at the price $500 and the chairman chair at the price $1,200. What is the prot for the company in February