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Show calculations Activity-Based Costing Wingli Corporation manufactures a variety of office chairs. The costing system was designed using an activity-based approach. The company produced two

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Activity-Based Costing Wingli Corporation manufactures a variety of office chairs. The costing system was designed using an activity-based approach. The company produced two styles of chairs in December. The production data are as follows: Units Direct Materials Direct Labour Hours Number of Parts Style A 25,000 $3,000,000 37,500 500,000 Style B 500 125,000 2,500 17,500 Three activities have been identified. Resource drivers are used to assign costs to each activity. The overhead activities, activity costs, and other related data are as follows: Budgeted Costs Cost Drivers Cost Allocation Rate Materials handling 1,000,000 Parts 0.25 Cutting 10,800,000 Parts 2.5 Assembly 10,000,000 Direct labour hours 25 There is no beginning or ending inventory. The direct labour rate is $30 per hour. Required: 1. Calculate the December total manufacturing costs. Manufacturing Costs Style A Style B Total 2. Calculate the unit costs for the style A and style B chairs. Round your answers to two decimal places. Unit Costs Style A Style B

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