The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 2,000 sets per year. Annual cost data at full capacity follow: Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,000 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000 Factory supervision . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 Property taxes, factory building . . . . . . . . . . . . . . . . $3,500 Sales commissions . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000 Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,500 Depreciation, administrative offi ce equipment . . . . . $4,000 Lease cost, factory equipment . . . . . . . . . . . . . . . . . $12,000 Indirect materials, factory . . . . . . . . . . . . . . . . . . . . . $6,000 Depreciation, factory building . . . . . . . . . . . . . . . . . $10,000 Administrative offi ce supplies (billing) . . . . . . . . . . . . $3,000 Administrative offi ce salaries . . . . . . . . . . . . . . . . . . $60,000 Direct materials used (wood, bolts, etc.) . . . . . . . . . $94,000 Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . .