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Exercise 12-12A (Algo) How the allocation of fixed cost affects a pricing decision LO 12-3...

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Accounting

Exercise 12-12A (Algo) How the allocation of fixed cost affects a pricing decision LO 12-3
Vernon Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 4,500 chairs in January. Materials and labor costs for January were $16,300 and $25,300, respectively. Vernon produced 2,300 chairs in February. Material and labor costs for February were $8,500 and $12,100, respectively. The company paid the $642,600 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year.
Required
Assuming that Vernon desires to sell its chairs for cost plus 35 percent of cost, what price should be charged for the chairs produced in January and February?
Note: Round intermediate calculations and final answers to 2 decimal places.
\table[[,January,February],[Price per unit,,]]
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