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 $4,100$ sets per year. Annual cost data at full capacity follow:

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 $($billing$)$

Administrative office salaries

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

Utilities, factory

$$87,000$

$$100,000$

$$75,000$

$$16,000$

$$60,000$

$$6,000$

$$2,000$

$$11,000$

$$19,000$

$$110,000$

$$5,000$

$$112,000$

$$428,000$

$$41,000$

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?

Complete thiThe 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 $4,100$ sets per year. Annual cost data at full capacity follow:

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 $($billing$)$

Administrative office salaries

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

Utilities, factory

$$87,000$

$$100,000$

$$75,000$

$$16,000$

$$60,000$

$$6,000$

$$2,000$

$$11,000$

$$19,000$

$$110,000$

$$5,000$

$$112,000$

$$428,000$

$$41,000$

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?

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

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.$)$

$\backslash$table$[[$Cost Item,Cost Behavior,$\backslash$table$[[$Period $($Selling$],[$or$],[$Administrative$)],[$Cost$]],$Product Cost$],[$Variable$,$Fixed,Direct,Indirect$],[$Direct labor,,;,,,"$],[$Advertising$,,,,,1],[$Factory supervision,,,$2,,],[$Property taxes, factory building,$1,,-,,],[$Sales commissions,,,,,$],[$Insurance$,$ factory,,,,,$],[$Depreciation$,$ administrative office equipr,,,,,$],[$Lease cost$,$ factory equipment,,,,,$],[$Indirect materials, factory,,$+,,r^8,-],[$Depreciation$,$ factory building,,,,,$-],[$Administrative office supplies $($billing$),,,,,],[$Administrative office salaries,,,$,,],[$Direct materials used $($wood$,$ bolts, etc.$),w,,,,],[$Utilities$,$ factory,,,E$.,,],[$Total costs,,,,,$]]$

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 $4,100$ sets per year. Annual cost data at full capacity follow:

$\backslash$table$[[$Direct labor,$$87,000$