Homework problems The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justity producing its full capacity of 3,800 sets per year. Annual cost data at full capacity follow Direct labor Advertising Factory supervision Property taxes, factory building ales commissions 89,000 s 105,e0 72,009 15,00e $ 56,00e s 8,000 Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreclation, factory building Administrative office supplies (billing) dnistrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 18,00 18,00e s 168,e0e 109,000 434,000 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 indrect) 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. Required 1 Required 2 Required 3 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, a seling and ministrative cost or a product cost. (If the item is a product cost, it should also be dlassified as either direct or indirect.) Cost Behavior Product Cost Fixed Dieect labor DELL