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 2,900 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct $122,500 Advertising 50,900 Factory supervision 40,900 Property taxes, factory building 4,400 Sales commissions 84,500 Insurance, factory 3,400 Depreciation, office equipment 4,900 Lease cost, factory equipment 12,900 Indirect materials, factory 6,900 Depreciation, factory building 10,900 General office supplies (billing) 3,900 General office salaries 64,500 Direct materials used (wood, bolts, etc.) 98,500 Utilities, factory 20,900