(need help) Case 1-26 (Algo) cost classification and cost behavior

1 125 Sepped wBlock Seleresces Case 1-26 (Algo) Cost Classification and Cost Behavior [LO1-1, LO1-2, LO1-3, LO1-4] The Dorlane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 3,900 sets per year. Annual cost data at full capacity follow Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory Indirect materials, factory Depreciation, factory building Administrative office supplies (ing) Administrative office salaries Direct materials used (wood, balts, etc.) Utilities, factory Required: $86,000 $ 104,000 $ 71,000 $15,000 $4,000 $ 2.000 18,000 $107,000 $4,000 $112,000 $420,000 $41,000 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost tom is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold and second, as a soiling and administrative cost or a product cost of the term is a product cost, it should also be classified as other direct or indirect 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 2 Required 3 Enter the dollar amount of each cost item under the appropriate headings. Note thac each cost rem is classified in two ways first, as variable or foxed with respect to the number of units produced and sold and second as a selling and administrative cost or a product. cost. (If the item is a product coat, it should also be classified as either direct or indirect.) Cest Crect labor Advertising Factory supervision Property taxes factary building Sales commissions urance factory Depreciation adminatrative offos aquipment Lease cost factory Indirect materiais factory Depreciation factory building Aonnsraive office supplies ching Adminsrative offce Ulis factory Totalcars Cost Behavior Variable Feed Period Sailing Administrative Cost Product Cost Direct Indirect Hopied 2>>