JK Companylocated in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairsThe company is currently operating at 80% of its full capacity of 5,000 sets per quarterQuarterly cost data at this level of operations

follow:

Factory labour, direct

Advertising

Factory supervision

Property taxes, factory building

Sales commissions

Insurance,.factory

Depreciationoffice equipment

Lease cost, factory equipment

Indirect materials, factory

Depreciation, factory building General office supplies (billing)

General office salaries

Direct materials used (wood, boltsetc)

Utilities, factory

$348,000

84,000

94,000

14,900

168,000

5,900 24,800

16,800

26,800

20,000

8,400 82,000

218,000

52,000

Required:

1Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headingsAs examplesthis has been done already for the first two items in the preceding listNote that each cost item is classified in two waysfirstas variable or fixedwith respect to the number of units produced and soldand, secondas a selling and administrative cost or a product cost(If the item is a product costit should also be classified as being either direct or indirect as shown)

Cost Behaviour

Product Cost

Selling and Administrative

Cost

Cost Item

Variable

Fixed

Direct $ 348,000

Indirect

348,000

84,000

84,000

Factory labourdirect

Advertising

Factory supervision

Property taxesfactory building

94,000

94,000

14,900

14,600

Sales commissions

168,000

168,000

5,900

5,900

Insurance, factory

24,800

24,800

Depreciationoffice equipment

Lease costfactory equipment

16,800

16,800

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pring Enabled: Assignment 2 (i) Smith \& Chief Ltd, of Sydney. Australia, is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The companv's income statements for the four most recent quarters follow: (Note: Smith \& Chief Ltd.'s Australlan-formatted income statement has been recast into the format common in Canada. The Australian dollar is denoted by AS.) Required: Required: 1. Identify each of the company's expenses (including cost of goods sold) as being variable, fixed, or mixed