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 $2,000$ sets per year. Annual cost data at full capacity follow:

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?

Complete this question by entering your answers in the tabs below.

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.$)$