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The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at
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 2,100 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising $118,500 50,100 Factory supervision 40,100 Property taxes, factory building 3,600 Sales commissions 80,500 Insurance, factory Depreciation, office equipment 2,600 4,100 Lease cost, factory equipment Indirect materials, factory 12,100 6,100 10,100 Depreciation, factory building General office supplies (billing) General office salaries: Direct materials used (wood, bolts, etc.) Utilities, factory 3,100 60,500 94,500 20,100
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