Problem 2-25 Cost Classification and Cost Behavior [LO2-1, LO2-2, LO2-3, LO2-4]

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 4,000 sets per year. Annual cost data at full capacity follow:

I. Exercise 2-14'High-Low' x M cmp'er Graded E , c Cheg-g snud'nsuigeas x G) ezt mheduca on com/hm px Problem 2-25 Cost Classloatlon and Cost Behavlor [L02-1. L02-2. Lei-3. L024] The Humane CananYF-Demahzes m muducmg a set ufwnnd Dam mmume cunswstmg nfa'able anemm man The set enluys gveat pupmamy and me company has amp'e umeve m keep prudummngmng ems mu caneeny nMDDDseE neryeav Annua' anal data emu canemmeHew memanur 5 9mm Auvememg 5 101mm Fadnrvsunemsmn 53 Hanna Pmnenv'axeihanrybmmmg 5x mnuu Se'es cummwsamns 5 55000 \ surance,hdnw 5 5mm Deprematmn' aamwsuauve nmee equlpmem s 1000 Lease cosh Emory eaulemem 5 15000 \ dwedmalenals'fadnrv 3 11000 Daprematmn' fadnry nwmng 5 104mm Aamwsvauve Mace sunnhes (mm) 5 5000 Anmumswanve emee samnes 53 101mm lmed matena's need (wuud' nuns, em) 5 431mm Uhhhes'famnrv 5 Jun Required: 1 Entevthe denav ammmtnfeach cast \\tem undevme annmunale headmgs Mme that each cusmem '5 daamed In one way; my as vename urxed wnn respemn me numhev enmns pmeueea and snld' andsecond' as aseumg and admwmslvatwe cost 01 a mum cost (me uem \\s a mum my \"Mum alsu he c'asswed as emev awed m mdwe) = Dwed \\ahnv Advemsmg Femmyeupememn Prnueytaxsi' iadurvhmmm Sa'es enmmeemne \"nance team uepveuenun, aamws'reuve emee eqmpmem Lease custlaclury enmpmem maven matena'sjamw Depveueuumeemry bulmmg Aammsuamve amnesunuhei (anng AemmeLraMe nimsa'anes uuem malenam usee (wand, nexu' em) utmuesJeanry Tum costs 5 U 5 u as u s u a u 2. compute the average maauct coslofone pane seHRound Vouranswerlo nearesl'mobe douan: verse! 1D 02 PM