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The Dorilane Company produces a set of wood patio furniture consisting of a table and four cheirs. The compony has enough customer demand to justify
The Dorilane Company produces a set of wood patio furniture consisting of a table and four cheirs. The compony has enough customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost dete at full capocity follow: Required: 1. Enter the doller smount of each cost item under the sppropriste heodings. Note thet esch 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 soministrative cost or a product cost. (If the item is o product cost, it should also be classified os either direct or indirect.) 2. Compute the sverage product cost of one potio set. 3. Assume thet production drops to only 1,000 sets annuslly. Would you expect the averege 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. (Ir the item is a product cost, it should also be classified as either direct or indirect.) The Dorilane Company produces s set of wood potio fumiture consisting of o table and four cheirs. The compony has enough customer demend to justify producing its full cepocity of 3,800 sets per year. Annual cost date at full copscity follow: Required: 1. Enter the doller amount of each cost item under the appropriste headings. Note that each cost item is classified in two ways: first, as weriable or fixed with respect to the number of units produced and sold; and second, ss a selling and acministrotive cost or a product. cost. (If the item is o product cost, it should also be clsssified 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 onnuslly. Would you expect the average product cost per set to increase, decresse, or remain unchanged? Complete this question by entering your answers in the tabs below. Compute the average product cost of one patio set. (Round your finat answer to nearest whole doilar.) The Donilane Company produces a set of wood patio furniture consisting of a table and four chairs. The compony has enough customer demend to justify producing its full cepecity of 3,800 sets per year. Annual cost dete at full capocity follow: Required: 1. Enter the doller amount of each cost item under the sppropriste hesdings. Note that esch cost item is classified in two ways: first, ss 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. (f the item is o product cost, it should also be classified ss either direct or indirect.) 2. Compute the oversge product cost of one patio set. 3. Assume that production drops to only 1,000 sets annuslly. Would you expect the averoge product cost per set to increase, decresse or remain unchenged? Complete this question by entering your answers in the tabs below. Assume that preduction drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged
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