Shulmans Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 4,300 bookcases per year. Annual cost data at full capacity follow:

Direct materials used (wood and glass)	$	435,200
Administrative office salaries	$	114,900
Factory supervision	$	70,800
Sales commissions	$	68,800
Depreciation, factory building	$	105,100
Depreciation, administrative office equipment	$	2,360
Indirect materials, factory	$	22,900
Factory labor (cutting and assembly)	$	91,200
Advertising	$	101,300
Insurance, factory	$	6,420
Administrative office supplies (billing)	$	4,420
Property taxes, factory	$	19,700
Utilities, factory	$	48,300

Required:
1.	Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold; and second, as either 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.)

2.	Compute the average product cost per bookcase. (Round your answer to nearest whole number.)

3.

Due to a recession, assume that production drops to only 2,360 bookcases per year. Would you expect the average product cost per bookcase to increase, decrease, or remain unchanged?

	Increase
	Decrease
	Remain unchanged