ZMATAR Furnitures is a company that make two types of dining furniture: Grand Furniture and Majestic Furniture. There are two types of direct materials: Oak and Marri woods. Direct manufacturing labour workers are hired on an hourly basis; no overtime is worked. In terms of manufacturing overhead costs, there are two manufacturing overhead cost pools and two cost drivers. The two manufacturing overhead cost pools are manufacturing operations overhead and machine setup overhead. The cost drivers for manufacturing overhead are direct manufacturing labour-hours for manufacturing operations overhead cost and setup labour-hours for machine setup overhead cost. Nonmanufacturing costs consist of product design, marketing, and distribution costs. The following budget data is available for the year ending 30 June 2024: Direct Materials Rate Oak $10.50 per meter square (m2) Marri $14 per meter square (m2) Direct Manufacturing labour rate $20 per hour Quantity of Material and Labour for each unit of the Product Grand Furniture Majestic Furniture Oak 10 m2 11 m2 Marri 7 m2 12 m2 Direct Manufacturing Labour 5 hours 7.5 hours Products Grand Furniture Majestic Furniture Expected Sales for 2024 (in units) 60,000 20,000 Selling Price $ 980 $ 1,100 Target ending inventory in units 9,000 750 Beginning inventory in units 2,500 500 Beginning inventory in dollars $ 525,000 $ 348,000 Direct materials inventory Oak Marri Beginning inventory 78,000 m2 60,000 m2 Target ending inventory 85,000 m2 20,000 m2 Manufacturing Operations Overhead cost Variable manufacturing operation overhead costs (per direct manufacturing labour-hours) Supplies Indirect manufacturing labour Power (support department costs) Maintenance (support department costs) Total variable manufacturing operation overhead cost $ 4.50 7.00 5.50 6.00 $ 23.00 Fixed manufacturing operation overhead cost Depreciation Supervision Power (support department costs) Maintenance (support department costs) Total fixed manufacturing operation overhead cost $ 1,380,000 440,000 675,000 480,000 $ 2,975,000 Machine Setup Overhead Costs Variable machine setup overhead cost (per setup labour-hour) Supplies Indirect manufacturing labour Power (support department) Total variable machine setup overhead cost $ 18 58 14 $ 90 Fixed machine setup overhead cost Depreciation Supervision Power (Support department cost) Total fixed machine setup overhead cost $ 580,000 1,068,500 18,000 $ 1,666,500 0.2 hour of setup labour-hour is allocated to make one unit of Grand Furniture and 0.3 hour of setup labour-hour is allocated for Majestic Furniture Non-manufacturing Cost Product Design Cost (fixed) $ 1,976,000 Marketing Cost Fixed marketing cost Variable marketing cost is equals the 6% of revenues $ 1,234,000 Distribution Cost Fixed distribution cost Variable distribution cost is $2 per cubic feet of table sold and shipped Grand Furniture 20 cubic feet per furniture sold and shipped Majestic Furniture 25 cubic feet per furniture sold and shipped $ 1,820,000 i. Non-manufacturing Cost Budget k. Budgeted Income Statement