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Baird Manufacturing Co. expects to make 31,300 chairs during the year 1 accounting period. The company...

Baird Manufacturing Co. expects to make 31,300 chairs during the year 1 accounting period. The company made 4,300 chairs in January. Materials and labor costs for January were $16,900 and $25,300, respectively. Baird produced 1,800 chairs in February. Material and labor costs for February were $9,500 and $14,000, respectively. The company paid the $563,400 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 Baird desires to sell its chairs for cost plus 50 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)

Business   Accounting   
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Answer #1
Allocation rate of Annual rental
Annual rental cost 563400
Divide: Units estimated to be produced 31300
Allocation rate of Annual rental 18
Total cost and Selling price
Jan Feb
Direct Material 16900 9500
Direct labour 25300 14000
Allocated rental @ 18 77400 32400
Total cost 119600 55900
Add: Markup @50% 59,800 27,950
Total sales revenue 1,79,400 83,850
Divide: Units 4,300 1800
Selling price 41.72 46.58
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