The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,200 sets per year. Annual cost data at full capacity follow Direct labor $ 94,000 Advertising $ 97,000 Factory supervision $ 66,000 Property taxes, factory building $ 17,000 Sales comissions $ 60,000 Insurance, factory $ 7,000 Depreciation, sininistrative office equipment $ 1,000 Lease cost, factory equipment $ 15,000 Indirect materials, factory $ 16,000 Depreciation, factory building $ 102,000 Administrative office supplies (billing) $ 4,000 Administrative office salaries $ 111,000 Direct materials used (wood, bolts, etc.) $426,000 Utilities, factory $ 47,000 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 variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or o product cost of the item is a product cost, it should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set. 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to Increase, decrease, or remain unchanged? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Enter the dollar amount of each cost item under the appropriate headinas. Note that each cost item is classified in two ways first as variable or Check 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 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.) 2. Compute the average product cost of one patio set. 3. Assume that production drops to only 1.000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged? Complete this aestion by entering your answers in the tabs below. Required 1 Required 2 Required 3 or Enter the dollar amount of each cost item under the appropriate headings. 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.) Period (Selling Cost Behavior Product Cost Cost Item Administrative) Variable Fixed Cost Direct Indirect Direct labor Advertising Factory supervision Property taxes, factory building Salos commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Required 1 Required 2 Required 3 Enter the dollar amount of each cost item under the appropriate headings. 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.) Cost Behavior Product Cost Cost Item Period (Selling or Administrative) Cost Variable Fixed Direct Indirect Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation factory building Administrative office supplies (biling) Administrative office salaries Direct materials used (wood, bolts, ofc) Utilities, factory Total costs $ 0 $ 0 $ 0 $ 0 $ 0 Required 2 > Depreciation, factory building $ 102,000 Administrative office supplies (billing) $ 4,000 Administrative office salaries $ 111,000 Direct materials used (wood, bolts, etc.) $ 426,000 Utilities, factory $ 47,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: fire variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a proc cost. (If the item is a product cost. It should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set. 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decr or remain unchanged? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the average product cost of one patio set. (Round your final answer to nearest whole dollar.) Average product cost per set Depreciation, factory building $ 102,000 Administrative office supplies (billing) $ 4,000 Administrative office salaries $ 111,000 Direct materials used (wood, bolts, etc.) $ 426,000 Utilities, factory $ 47,000 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 variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or o product cost of the item is a product cost, it should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set. 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease. or remain unchanged? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase decrease, or remain unchanged? Increase Decrease Remain unchanged