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1 taran question 32:26:50 eBook The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company
1 taran question
32:26:50 eBook The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 2,500 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising $120,500 50,500 40,500 Factory supervision Property taxes, factory building Sales commissions 4,000 82,500 Insurance, factory 3,000 4,500 Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) 6,500 10,500 3,500 General office salaries 62,500 96,500 Direct materials used (wood, bolts, etc.) Utilities, factory 20,500 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Cost Behaviour Variable Selling and Administrative Product Cost Direct Indirect" Cost Item Factory labour direct S 120,500 Advertising 50.500 Factory supervision Property taxes factory building Ralas rammissions Fixed 50,500 1 of 4 112 S 120,500 Next >Step by Step Solution
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