Cost and sales information for the most recent fiscal year are shown below: WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials $ 99,000 Raw materials inventory, beginning 19,000 Raw materials inventory, ending 26,000 Depreciation, factory 47,400 Insurance, factory 5,000 Direct labour 69,000 Maintenance, factory 30,000 Administrative expense 73,600 Sales 540,000 Utilities, factory 27,000 Supplies, factory 1,000 Selling expense 83,600 Advertising expense 23,600 Indirect labour, factory 65,000 Work in process inventory, beginning 7,000 Work in process inventory, ending 30,000 Finished goods inventory, beginning 10,000 Finished goods inventory, ending 40,000 Required

4. Assume that the company expects to produce and sell 15,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straight-line depreciation and that the factory equipment has five years of useful life remaining. (Round your answers to 2 decimal places.) 4. Assume that the company expects to produce and sell 15,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straight-line depreciation and that the factory equipment has five years of useful life remaining. (Round your answers to 2 decimal places.)