Please answer questions 1 - 4. The "Variable total" is equal to 450,000 (professor told us in class). Thank you!

P1-A The Walnut Company specializes in producing a set of wood patio furniture consisting of a a table and four chairs. The set enjoys great popularity and the company has orders for 10,000 sets per year. Annual cost data, at this level of production, follows Advertising Factory labor, direct Salaries, office Depreciation, factory Office supplies (billing) Sales commissions Utilities, factory Direct materials used Rent, office Insurance, factory Indirect labor Property taxes, factory Depreciation office equip 40,000 130,000 90,000 45,000 5,000 150,000 65,000 80,000 20,000 10,000 20,000 50,000 15,000 Required: 1) Prepare an answer sheet with the column headings shown below. Enter each dollar amount on your answer sheet, in two columns. Each amount will be placed in either the variable or fixed column and each amount will be placed in one of the three columns to the right. Indirect product cost = overhead. Cost Behavior Variable Fixed $ 40,000 $ 130,000 Selling or Administrative Cost $ 40,000 Product Cost Direct Indirect (OH) Advertising Factory labor, direct $ 130,000 2) Total each column 3) Compute the average cost to make one patio set. 4) If production dropped, from its current level of 10,000 sets to 8,000 sets, would you expect the cost to make one set to increase, decrease, or stay the same? Why