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Scheem- Company manufactures a variety of prestige boardroom chairs. Its job-costing. systemuses an activity-based approach. There are two direct-cost categories (direct materials- and direct manufacturing-labour) and three indirect-cost pools. The cost-pools represent three- activity areas-at-the-plant. I Manufacturing. Budgeted-Costs-for- Cost-Driver-used as. Cost-allocation- Activity-Arear 2019 Allocation-based rated Materials handlinga R200-000a Partsa R0.250 Cuttinga R2°000-000a Partsa R2.500 Assemblya R2°000-000a Direct-manufacturing: R25.00a labour-hoursa T Two-styles of chairs were produced in March: the executive chair and the chairman chair.- Their quantities, direct-materials costs, and other data for May 2019 are as follows: 1 Units Direct: material. Number. of Direct producede costs parts manufacturing labour hours Executive-chaina 5-000a R600-0000 100 0000 7-5000 Chairman-chaina 1000 R25-0000 3-5000 5000 T The direct manufacturing labour rate is: R20 per hour. Assume no beginning or ending. inventory. I Required:1 2.1 Calculate the May-2019 total manufacturing costs and unit costs of the executive-chair- and the chairman-chair T

Assignment-3 100-Marks Due: 6-May-20221 2.2 → The upstream activities to manufacturing (R&D and design) and the downstream activities (marketing, distribution, and customer service) are analyzed, and the unit costs in 2019 are budgeted to be. I 1 Upstream-Activitiesa Downstream-Activitiesa Executive-chaira R600 R1100 Chairman-chaira R1460 R2360 T Calculate the full-cost per unit of each chair. (Full costs of each chair is the sum of the costs- of all business-functions-inthe-value chain.) | 2.3 – Compare the per-unit costs figures for the executive chair and the chairman chair calculated in 2.1 and 2.2 above. Why do these costs differ for each chair? Why might these differences be important to Scheem Company?