DoLittle Incorporated specialises in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has enough orders to keep production going at its full capacity of 2 000 sets per year. Annual cost data at full capacity: R A Property taxes (factory building: 200m: Office building: 50m) 18 000 B Wages Factory machine operators (paid a labour rate of R30 per hour 1 000 000 worked) c Advertising 23 000 D Salaries - General manager (time allocation: 50% for supervision of 200 000 production, 50% for financial management and marketing and sales activities) Materials - Wood 940 000 F Materials - Glue (bought in 10-litre containers) 16 000 G Salaries Production team leaders (one team leader is needed to supervise 10 200 000 labourers (11 20 labourers require two team leaders, etc.)) H Salaries - Sales representatives 300 000 I Insurance on buildings (factory building: 200m2, Office building: 50m) 25 000 J Depreciation - Office equipment 20%; Factory machinery 80% 34 000 K Lease - General factory equipment 120 000 L Salaries - Office personnel 450 000 E Cost classification Cost Item Cost behaviour Product Cost Period Cost Variable Step-fixed Direct Fixed 18 000 Indirect 14 400 3 600 A (example) B C D E F G H I J K L