Response to the following problem:
Toler Company manufactures a line of office chairs. Each chair takes $18 of direct materials and uses 1.3 direct labor hours at $15 per direct labor hour. The variable overhead rate is $1.40 per direct labor hour and the fixed overhead rate is $3.60 per direct labor hour. Toler expects to produce 15,000 chairs next year and expects to have 500 chairs in ending inventory costing $44 each. There is no beginning inventory of office chairs.
Required:
Prepare a cost of goods sold budget for Toler Company.