Question $2(25$ points $50$ minutes$)$

The company JLB manufactures children$$s furniture using Quebec labor and materials. Since it has only been operating for a few months, it has devoted its efforts to designing and developing three products. JLB makes play tables, storage boxes, and bed bases. Because you have knowledge of management accounting, your friend Kenza would like you to help her determine the cost of producing these items.

Workshop$-$Related Costs

Insurance: $$1,790$

Electricity: $$18,073$

Equipment rental: $$16,630$

Raw materials $($RM$)$: $$57,520$

Direct labor $($DL$)$: $$156,200$

Indirect labor: $$39,800$

Total: $$290,013$

The following table shows the estimated factory$-$related costs for the three products she manufactures. JLB plans to produce $275$ tables, $1,200$ boxes, and $480$ beds in the coming year. Making one table requires $4$ direct labor hours $($DLH$)$ and $2$ machine hours $($MH$)$; making one box requires $3$ DLH and $4$ MH; and making one bed requires $5$ DLH and $1$ MH$.$

Employees$$ hourly wage is $$22.$ Producing a table requires $$32\mathrm{.}00$ of raw materials, while a box costs $$26\mathrm{.}00$ in materials, and a bed costs $$36\mathrm{.}50.$ Finally, selling and administrative expenses amount to $$80,000.$

Since workshop$-$related costs total $$290,013,$ selling and administrative expenses $$80,000,$ and JLB plans to manufacture a total of $1,955$ products, Kenza calculated the unit cost of the products to be $$189\mathrm{.}26.$ Furthermore, JLB anticipates using $5,830$ machine hours over the course of the year.

Unit Cost of a Product

Total workshop costs: $$290,013$

Selling and administrative expenses: $$80,000$

Total costs: $$370,013$

Number of products manufactured: $1,955$

Unit cost per product: $$189\mathrm{.}26$