ZMATAR Furnitures is a company that make two types of dining furniture: Grand Furniture and Majestic Furniture. There are two types of direct materials: Oak and Marri woods. Direct manufacturing labour workers are hired on an hourly basis; no overtime is worked. In terms of manufacturing overhead costs, there are two manufacturing overhead cost pools and two cost drivers. The two manufacturing overhead cost pools are manufacturing operations overhead and machine setup overhead. The cost drivers for manufacturing overhead are direct manufacturing labour-hours for manufacturing operations overhead cost and setup labour-hours for machine setup overhead cost. Nonmanufacturing costs consist of product design, marketing, and distribution costs.

Direct Manufacturing labour rate	$20 per hour

Direct Manufacturing Labour	5 hours	7.5 hours

	Products
	Grand Furniture	Majestic Furniture
Expected Sales for 2024 (in units)	60,000	20,000
Selling Price	$ 980	$ 1,100
Target ending inventory in units	9,000	750
Beginning inventory in units	2,500	500
Beginning inventory in dollars	$ 525,000	$ 348,000

Manufacturing Operations Overhead cost
Variable manufacturing operation overhead costs (per direct manufacturing labour-hours)
Supplies Indirect manufacturing labour Power (support department costs) Maintenance (support department costs) Total variable manufacturing operation overhead cost	$ 4.50 7.00 5.50 6.00 $ 23.00
Fixed manufacturing operation overhead cost
Depreciation Supervision Power (support department costs) Maintenance (support department costs) Total fixed manufacturing operation overhead cost	$ 1,380,000 440,000 675,000 480,000 $ 2,975,000

Machine Setup Overhead Costs
Variable machine setup overhead cost (per setup labour-hour)
Supplies Indirect manufacturing labour Power (support department) Total variable machine setup overhead cost	$ 18 58 14 $ 90
Fixed machine setup overhead cost
Depreciation Supervision Power (Support department cost) Total fixed machine setup overhead cost	$ 580,000 1,068,500 18,000 $ 1,666,500
0.2 hour of setup labour-hour is allocated to make one unit of Grand Furniture and 0.3 hour of setup labour-hour is allocated for Majestic Furniture

Non-manufacturing Cost
Product Design Cost (fixed)	$ 1,976,000
Marketing Cost Fixed marketing cost Variable marketing cost is equals the 6% of revenues	$ 1,234,000
Distribution Cost Fixed distribution cost Variable distribution cost is $2 per cubic feet of table sold and shipped Grand Furniture 20 cubic feet per furniture sold and shipped Majestic Furniture 25 cubic feet per furniture sold and shipped	$ 1,820,000

Find

a) Direct Manufacturing Labour Cost budget