Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its...
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Accounting
Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its products during its first year of operation.
| Chairs | Desks | Total | |||||||
| Direct Materials | $ | 7,500 | $ | 9,500 | $ | 17,000 | |||
| Direct Labor | 15,500 | 11,500 | 27,000 | ||||||
Also the company incurred $20,790 of employee benefits cost. Since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. Based on this information alone the total cost of making chairs is. (Do not round intermediate calculations.)
Multiple Choice $23,000. $44,000. $34,935. None of the answers is correct
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