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: [see image 'main']

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 question by entering your answers in the tabs below. [see image req1-3]

The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand tojustify producing its full capacity of 3,900 sets per year. Annual cost data at full capacity follow: Direct labor 5 89,308 Advertising 5 102,308 Factor").r supervision 5 73,308 Propertyr taxes, factory building 5 16,308 Sales commissions 5 53,300 Insurance, factory 5 L308 Depreciation, administrative office equipment 5 2,308 Lease cost, factory equipment 5 19,308 Indirect materials, factor}:' 5 16,308 Depreciation, factoryr building 5 102,300 Administrative office supplies (billing) 5 4,308 Administrative office salaries 5 109,308 Direct materials used (woo-d, bolts, etc.) 5 433,308 Utilities, factory 5 43,308 [ Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classied in two ways: rst, 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 classied 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 labs below. J Requiredl H Required2 Required3 Enter the dollar amount of each oost item under the appropriate headings. Note that each cost item is classied in two ways: rst, as variable or xed 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.) Direct la bor Adve rsing Factory su pervision Property taxes, factory building Sales com missions Insurance, factory Depreciation, administrative oice equipment Lease cost, fadory equipment Indirect materials, factory Depreciation, factory building Administrative office supplies (billing) Administrative ofce salaries Direct materials used (wood, bolts, etc.) Utilities, fadory Required 2 > \fRequired 1 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? OIncrease ODecrease Remain unchanged