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 4,000 sets per year. Annual cost data at full capacity follow:

Direct labor	$	86,000
Advertising	$	97,000
Factory supervision	$	70,000
Property taxes, factory building	$	16,000
Sales commissions	$	58,000
Insurance, factory	$	5,000
Depreciation, administrative office equipment	$	3,000
Lease cost, factory equipment	$	12,000
Indirect materials, factory	$	18,000
Depreciation, factory building	$	104,000
Administrative office supplies (billing)	$	5,000
Administrative office salaries	$	111,000
Direct materials used (wood, bolts, etc.)	$	433,000
Utilities, factory	$	45,000

2. Compute the average product cost of one patio set.

Average product cost

per set