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 2,600 sets per quarter. Quarterly cost data at this level of operations foilow: Factory labour, direct $121,666 Advertising 58,666 Factory supervision 46,666 Property taxes, factory building 4,166 Sales commissions 83,666 Insurance, factory 3,166 Depreciation, office equipment 4,666 eBook Lease cost, factory equipment 12,666 Indirect materials, factory 6,666 Depreciation, factory building 18,666 General office supplies (billing) 3,666 General office salaries 63,666 Direct materials used (wood, bolts, etc') 97,666 Utilities, factory 28,666 E . Required: 1. Enter the dollar amount of each cost item under the appropriate headings, As examples, this has been done already for the rst two items in the preceding list. Note that each cost item is classied in two ways: rst, as variabEe or xed, 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 classied as either direct or indirect as shown.) Factory labour, direct $ 121,000 Advertising 50600 Factory supervision Property taxes, factory building Sales commissions 50,600 lrlrl Irnnrn {art-Ar" Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the rst two 4 items in the preceding list. Note that each cost item is classied in two ways: rst, 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. (lfthe item is a product cost, it should also be classified as either direct or indirect as shown.) Factory labour, direct eElook Advertising Factory supeni'ision Property taxes, factory building Sales commissions insurance, factory Depreciation, ofce equipment Lease cost, factory equipment indirect materials, factory Depreciation, factory building General ofce supplies (billing) General ofce salan'es Dired materials used (wood, bolts, etc.) Utilities, factory Total costs 'To units of product. 4 eBook 2. Based on the answers obtained in Requirement (1}, compute the average product cost per patio set. (Round your answer to 2 decimal places.} 3. Assume that production increases to only 2,340 sets quarterly. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged? 0 Increase 0 Decrease Ci Remain unchanged 4. Refer to the original data. The president's brotherinlaw 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, 3. Would you expect any disagreement over the price the brothereineiaw should pay? What price does the president probably have in mind? (Round your answer to 2 decimal places.) _ 4 4. Refer to the original data, The president's brotherrinrlaw 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. 5. Would you expect any disagreement over the price the brotherinlaw should pay? What price does the president probably have in mind? (Round your answer to 2 decimal places.) 02:15:25 eBook b. Since the company is operating below its full capacity, what cost term used in the chapter might be the most applicable in this situation? 0 Opportunity cost 0 Sunk cost 0 Relevant cost