please answer questions 3-6

B D E F G PART 1 INFORMATION One of your closest friends is an inventor and an entrepreneur who wants to start a business selling new, break through office items: a new office chair that is more comfortable than any before it, and an office table that is the most functional on the market. The table even has padding that is made of the same materials as the cushions of the chairs to provide extra arm comfort. Your friend wants to start the business by opening a factory to produce the chairs and tables which can then be sold to either wholesalers or retailers who will then sell them to the general public. After searching all over creation for the right sized building in the perfect location to properly meet the needs of his target customers, he found that the ideal building in which to put up the factory was right here in Petersburg all along To build the chairs and tables, a machine was purchased and workers were hired. Part of the manufacturing process for both products is automated, and part of the manufacturing process for both products is done by hand. The number of each product to be produced is as follows: 104,000 80,000 Yearly Number Of Chairs To Be Produced Yearly Number Of Tables To Be Produced It is determined that to produce each product, the following materials are needed H103 fo B A E D G 22 23 24 25 Square Feet of Wood Square Feet of Fabric Square Feet of Foam Per Chair 27 9 7 Per Table 127 7 5 26 27 28 Materials can be purchased for the following amounts: 29 30 31 32 33 34 35 36 37 38 Wood Fabric Foam Purchase Price Per Square Foot $0.23 $0.52 $0.13 It takes the following amounts of time to produce each product. Workers who produce each product are also paid the following hourly wage: Minutes To Produce Each Product Worker Hourly Wage Chair 10 $17.00 Table 25 $22.00 39 40 It has been determined that the production process for both chairs and tables involves the following activities with their related activity drivers 41 42 2) Direct Labor Cost per Chair and Table A B E F G It has been determined that the production process for both chairs and tables involves the following activities with their related activity drivers Prochuction Activities Machine Setups Machining Quality Control Inspections Activity Driver Number of Setups Machine Hours Hours of Analysis Number of Inspections Type Variable Variable Fixed Fixed It has been determined that each activity will require the following amounts of money and each product will consume the following amounts of each activity driver: Tables Chairs 72 47 42 Activity Drivers Machine Setups: Number of Setups Materials Moves: Number of Material Moves Machining Machine Hours Quality Control: Hours of Analysis Inspections: Number of Inspections Total Dollars Of Each Activity $55,000 $35,000 $60,000 $78,000 $78,000 17,200 10,200 700 57 23,200 12,200 950 5 7 8 9 1) Direct Materials Cost per Chair and Table 0 Answer: B C D 57 (2) Direct Labor Cost per Chair and Table 58 Answer: 69 Explanation: 70 71 72 73 74 75 76 3) Factory Overhead Cost per Chair and Table Answer: Explanation: 77 78 79 80 81 82 83 4) Total Cost Per Chair and Table 84 Answer 85 Explanation: OF B D 5) Variable Cost per Chairs and Table Answer: Explanation: 6) Fixed Cost per Chair and Table Answer: Explanation