Task Description Comfort Chairs, Inc., is a small company in Australia. It manufactures two types of chairs, i.e., the basic and the executive chairs. Each chair goes through the manufacturing processes in two departments (frame fabrication and cushion fabrication). The main difference in manufacturing processes between the two types of chairs is additional padding in the executive chairs. This additional padding occurs in cushion fabrication department using a special equipment. Comfort Chairs, Inc. established an internship program that allows university students to practice their accounting knowledge and bring new knowledge to Comfort Chairs. You are doing your internship job in Comfort Chairs. In planning for the coming year, the CEO and the sales manager would like to know the production cost of each chair in order to adjust the list price. The CFO assigns you to compute the unit cost for basic and executive chairs, respectively. Budgeted direct costs for each department are as follows: Total 225,000 Budgeted Chair Production and Cost Data Frame Fabrication Cushion Fabrication Basic Number of chairs Direct labor/per chair $ 7.40 $ 6.40 Direct materials per chair 6.70 2.40 Total $14.10 $ 8.80 Executive Number of chairs Direct labor/per chair $ 7.50 $ 8.70 Direct materials per chair 6.80 6.20 $14.30 $14.90 $ 22.90 192,000 Total $29.20 Budgeted overhead costs for the year are shown in the accompanying table. Budgeted Overhead Costs Rent $1,680,000 Indirect labor 1,660,000 Indirect materials 1,125,000 Equipment lease payments 1.413.000 Total overhead $5,878,000 Task 1 (4 marks): You took cost accounting in the University of Melbourne and decide to use a single overhead cost pool and a single allocation base to allocation overhead to basic and executive chairs. You use "direct labor costs" as the allocation base. Please calculate the unit cost of basic and executive chairs using above mentioned approach