Reference no: EM132595954

A company manufactures two products, chairs and tables. Data regarding the two product is as follows:

                   Direct labor hours per unit                    Annual production

Chairs              0.5 Hours                                      5,000 Units

Tables                  0.8 Hours                                  4,000 Units

Chairs require $40.00 in direct materials per unit and tables require $50 per unit.

The direct labor wage rate is $30 per hour. The activity-based costing system has the following activity cost pools:

Activity cost pool                Activity Measure           Estimated overhead cost       Activity Machine set ups

Number of set ups                  $150,000                              1,000                                 1,500

Special processing Machine hours  $100,000                             180                                       220

Question 1: Compute the unit product cost for chairs rounded to the nearest cent. Compute the unit product cost for chairs rounded to the nearest cent.