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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
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 21.300Step by Step Solution
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