Okeke Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labour hours at $16 per direct labour hour. The variable overhead rate is $1.20 per direct labour hour and the fixed overhead rate is $1.60 per direct labour hour. Okeke expects to have 675 chairs in ending inventory.
Required:
1. Calculate the unit product cost.
2. Calculate the cost of budgeted ending inventory.