Question - Preparing an Ending Finished Goods Inventory Budget
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour and the fixed overhead rate is $1.40 per direct labor hour. Andrews expects to have 570 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
1. Calculate the unit product cost. (Note: Round to the nearest cent.)
2. Calculate the cost of budgeted ending inventory. (Note: Round to the nearest dollar.)