Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with question 4 The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company

need help with question 4

image text in transcribed

image text in transcribed

The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company has ample orders to keep production going at its full capacity of 3,300 sets per quarter. Quarterly cost data at full capacity follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $ 124,500 51,300 41,300 4,800 86,500 3,800 5,300 13,300 7,300 11,300 4,300 66,500 100,500 21,300 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. 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. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Itenm Variable Fixed Direct Indirect* $ 124,500 Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs S 124,500 51,300 41,300 4,800 51,300 41,300 4,800 86,500 86,500 3,800 5,300 13,300 3,800 5,300 13,300 7,300 11,300 7,300 11,300 4,300 4,300 66,500 66,500 100,500 100,500 21,300 S 344,400 197,600213,900225,000103,100 21.300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Peace Love Auditing Journal

Authors: Epic Love Books

1st Edition

1697161693, 978-1697161694

More Books

Students also viewed these Accounting questions

Question

Describe new developments in the design of pay structures. page 475

Answered: 1 week ago