he Outdoor Dining Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of $1,800$ sets per year. Annual cost data at full capacity follow:

Direct labour $ $134,200$

Advertising $37,100$

Factory supervision $48,600$

Property taxes, factory building $2,900$

Sales commissions $74,600$

Insurance, factory $2,500$

Depreciation, administrative office equipment $3,500$

Lease cost, factory equipment $14,900$

Indirect materials, factory $5,400$

Depreciation, factory $9,100$

Administrative office supplies $3,700$

Direct materials used $($wood$,$ bolts, etc.$)85,000$

Utilities, factory $24,300$

Required:

Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold, and second, as either 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.$)$

Compute the average product cost per patio set.

Note: Round your answer to $2$ decimal places.

Due to reduced demand, assume that production drops to only $1,000$ sets per year. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged?

multiple choice

Increase

Decrease

Remain unchanged

This part of the question is not part of your Connect assignment.