K. Company, located in indonesta, spectalizes in producing sets of wooden patio fumiture cansasting of a table and four chairs. The company is currensly operating at 80 s of ins full capacity of 5000 sets per quarter. Quarteify cost data at ehis level af operotions bliow: Required: Requiled: 1. Fnter each cost them on your antwer sheet placing the dolur amoum of each cout dern under the appropilate headings. As ersabiles, twa has beten done aheady for the frst wo items in the preceding list. Note that each cous item is dassified in two warys fint at varable or fored wehrespect to the number of units preduced and sold, and, second, as a seling and admenistrabive cost or a product cost. of the item is a pibduct cost it should also be dassified as being either direct or indirect as shown] 2. Based on the answers obtained in Requirement (1), compute the average product cost. per patio set. (Round your onswer to 2 decimal places.) 3. Assume that production increases to only 4,200 sets quarteily. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged? increase Decrease Remain unchanged A. Refer to the original data. The presidents brother-n-taw has considered making a patio set and has priced the necessary materiats at a boulding supply store. He has asked the president if he could purchase a patio set from the JK Company "at cost," and the president has aqreed to let him do so a. Would you expect any disagreement over the pnce the brothet - in-law should pay? What pnce does the president probably have in mind? The brother in faw? (Round your anwwer to 2 decimal places.) b. Since the company is operating below its full capacty, what cost term used in the chapter might be the most applicable in this: situation? Opportunity cost Sunk cost Reievant cost K. Company, located in indonesta, spectalizes in producing sets of wooden patio fumiture cansasting of a table and four chairs. The company is currensly operating at 80 s of ins full capacity of 5000 sets per quarter. Quarteify cost data at ehis level af operotions bliow: Required: Requiled: 1. Fnter each cost them on your antwer sheet placing the dolur amoum of each cout dern under the appropilate headings. As ersabiles, twa has beten done aheady for the frst wo items in the preceding list. Note that each cous item is dassified in two warys fint at varable or fored wehrespect to the number of units preduced and sold, and, second, as a seling and admenistrabive cost or a product cost. of the item is a pibduct cost it should also be dassified as being either direct or indirect as shown] 2. Based on the answers obtained in Requirement (1), compute the average product cost. per patio set. (Round your onswer to 2 decimal places.) 3. Assume that production increases to only 4,200 sets quarteily. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged? increase Decrease Remain unchanged A. Refer to the original data. The presidents brother-n-taw has considered making a patio set and has priced the necessary materiats at a boulding supply store. He has asked the president if he could purchase a patio set from the JK Company "at cost," and the president has aqreed to let him do so a. Would you expect any disagreement over the pnce the brothet - in-law should pay? What pnce does the president probably have in mind? The brother in faw? (Round your anwwer to 2 decimal places.) b. Since the company is operating below its full capacty, what cost term used in the chapter might be the most applicable in this: situation? Opportunity cost Sunk cost Reievant cost
