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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 80%
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 2.200 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions 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, bolts, etc.) Utilities, factory $119,000 50,200 40,200 3,700 81.NO 2.700 4,200 12,200 6.200 10,200 3,200 61,000 95,000 20,200 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 Selling and Administrative Variable Fixed Cost $ 119.000 50,200 50,200 Product Cost Direct Indirect 119,000 Cost Item Factory labour direct Advertising Factory supervision Property taxes, factory building Carmine $
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