Question
abled: Assignment 2 i JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table company is currently operating
abled: Assignment 2 i JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this le follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $354,000 87,000 97,000 15, 200 174,000 6,200 25,400 17,400 27,400 21,500 8,700 83,500 Saved 221,000 53,500 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate examples, this has been done already for the first two items in the preceding list. Note that each cost item is cla
b. Since the company is operating below its full capacity, what cost term used in the chapter might situation? Opportunity cost Sunk cost Relevant cost
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