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:

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:

There is no beginning or ending inventory. The direct labour rate is $30 per hour.
Required:
1. Calculate the December total manufacturing costs.
2. Calculate the unit costs for the style A and style B chairs.

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Direct Materials Direct Labour Hours 37,500 2,500 Number of Parts Units Style A Style B 25,000 S3,000,000 500,000 17,500 500 125,000 Budgeted Costs 1,000,000 10,800,000 10,000,000 Cost Drivers Cost Allocation Rate Materials handling Parts Cutting Assembly 0.25 2.5 25 Parts Direct labour hours