Question: Please show work. Thank you Practice Problem 2 The Schramka Company manufactures a variety of chairs. The company's activity areas and related data follow: Manufacturing
Practice Problem 2 The Schramka Company manufactures a variety of chairs. The company's activity areas and related data follow: Manufacturing Activity Budgeted Overhead Costs Expected Capacity Overhead Cost per Unit of Cost Driver (PDOH) Cost Driver Material handling Cutting Assembly Painting $ 200,000 $ 2,000,000 $ 5,000,000 $ 1,000,000 Number of parts Number of parts Direct labor hours Number of units 800,000 800,000 200,000 45,455 $0.25 $2.50 $25.00 $22.00 Two styles of chairs were produced in March, the standard chair and an unpainted chair that had fewer parts and required no painting activities. Their quantities, direct material costs, and other data follow: Units Produce Direct Material Costs Number of Parts Assembly Direct Labor Hours Standard chair Unpainted chair 5,000 1,000 $600,000 $85,000 100,000 15,000 7,500 1,100 Required: 1. Compute the total manufacturing costs and unit costs of the standard chairs and the unpainted chairs using ABC 2. Suppose upstream activities, such as product design, were analyzed and applied to the standard chairs at $20 each and the unpainted chairs at $15 each. Moreover, similar analyses were conducted of downstream activities, such as distribution, marketing, and customer service. The downstream costs applied were $200 per standard chair and $80 per unpainted chair. Compute the full product cost per unit
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