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Question - Preparing an Ending Finished Goods Inventory Budget - Andrews Company manufactures a line of office chairs. Each chair takes $18 of direct materials and uses 1.9 direct labor hours at $20 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $1.80 per direct labor hour. Andrews expects to have 710 chairs in ending inventory. There is no beginning inventory of office chairs.
Required -
1. Calculate the unit product cost.
2. Calculate the cost of budgeted ending inventory.
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