Check my work The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,100 sets per year. Annual cost data at full capacity follow $ 88,000 $ 105,000 $ 70,000 $20.000 $ 60,000 $7.000 Direct labor Advertising Factory supervision Property taxes, factory building Sales commission Insurance factory Depreciation, administrative office equipment Le coat, factory quipment Indirect materials, factory Depreciation, factory building Administrative office supplies (511ings Administrative office salaries Direct materials used wood, bolts, ate 1 utilities, factory 1.606 # 11.00 # 18,000 109,000 $3,000 $ 100.000 5.433.000 41.000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. 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 of the item is a product cost, it should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease. or remain unchanged? Complete this question by entering your answers in the tabs below. Check my work The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,100 sets per year. Annual cost data at full capacity follow $ 88,000 $ 105,000 $ 70,000 $20.000 $ 60,000 $7.000 Direct labor Advertising Factory supervision Property taxes, factory building Sales commission Insurance factory Depreciation, administrative office equipment Le coat, factory quipment Indirect materials, factory Depreciation, factory building Administrative office supplies (511ings Administrative office salaries Direct materials used wood, bolts, ate 1 utilities, factory 1.606 # 11.00 # 18,000 109,000 $3,000 $ 100.000 5.433.000 41.000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. 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 of the item is a product cost, it should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease. or remain unchanged? Complete this question by entering your answers in the tabs below
