The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 2,800 sets per quarter Quarterly cost data at this level of operations follow $122, 50, 40, Factory Labour, direct Advertising Factory supervision Property taxes, factory building Sales comissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation factory building General office supplies (billing) General office salaries Direct materials used (wood, belts, etc.) utilities, factory 84, 3,300 4,800 12.00 6,500 10.800 3,500 64,000 98,000 20,800 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. 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 as shown) Cost Behaviour Variable Fixed Selling and Administrative Cost Product Cost Direct Indirect 122.nl Cost Item 8 2. Based on the answers obtained in Requirement (1), compute the average product cost per patio set (Round your answer to 2 decimal places) per patio set 3. Assume that production increases to only 2,520 sets quarterly. Would you expect the average product cost per patio set to increase, decrease or remain unchanged? Increase Decrease O Remain unchanged Decrease Remain unchanged 4. Refer to the original data. The president's brother in law has considered making a patio set and has priced the necessary materials at a building supply store. He has asked the president if he could purchase a patio set from the Mahela Company at cost" and the president has agreed to let him do so. o Would you expect any disagreement over the price the brother-in-law should pay? What price does the president probably have in mind? (Round your answer to 2 decimal places.)