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 $3,900$ sets per year. Annual cost data at full capacity follow:

Direct labor $ $87,000$

Advertising $ $98,000$

Factory supervision $ $68,000$

Property taxes, factory building $ $25,000$

Sales commissions $ $56,000$

Insurance, factory $ $5,000$

Depreciation, administrative office equipment $ $3,000$

Lease cost, factory equipment $ $19,000$

Indirect materials, factory $ $18,000$

Depreciation, factory building $ $104,000$

Administrative office supplies $($billing$)$ $ $3,000$

Administrative office salaries $ $115,000$

Direct materials used $($wood$,$ bolts, etc.$)$ $ $431,000$

Utilities, factory $ $46,000$

Required:

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.$)$

Compute the average product cost of one patio set.

Assume production drops to only $1,000$ sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged?