Problem
Oxmoor Manufacturing Co. expects to make 30, 300 chairs during the 2013 accounting period. The company made 5, 100 chairs in January. Materials and labor costs for January were $17, 800 and $25, 300, respectively. Oxmoor produced 1, 200 chairs in February. Material and labor costs for February were $8, 900 and $13, 500, respectively. The company paid the $303,000 annual rental fee on its manufacturing facility on January 1, 2013. Assuming that Oxmoor 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?