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 3,500 sets per quarter Quarterly cost data at this level of operations follow, Factory labour direct Advertising Factory supervision Property taxes, factory building Sales Comissions Insurance, factory Depreciation, office equipent Lease cost, factory equipsent Indirect materials, Factory Depreciation factory building General office supplies (olling) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 3125,560 51. See 41,500 5,00 87,500 4.00 5.500 13,500 7,500 11,50 4,500 67,5e 101,500 21,500 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) Product Cost Direct Indirect 126.800 41,500 5.000 4.000 Cost Item Factory about 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, boits, etc.) Ultes factory Total costs "To units of product Cost Behaviour Selling and Administrative Variable Fixed Cost 5 125,500 51.500 51.500 41,500 5.000 87.500 87.500 4.000 5.500 5.500 13.500 7,500 11,500 4.500 4.800 67,500 07,500 101.500 21,500 5 322.000 $ 220.000 3 216.500 5 13,500 7.500 11.500 101,500 21.500 104.500 227.00015 2. Eined on the shower tied in ement compte surse product or Pound your entwerte 2 decimal places 13 3. Atute that production increases to only 3,190 sets only. Would you expect the average product cost per poco set to increase decrease or remain unchanged? Increase Decrease Remain unchanged 4. Refer to the original doto. The president's brother-in-law has considered making a petio set and has priced the necessary materials to building supply store. He has asked the president of he could purchase a patio set from the Manels company at cost and the president has agreed to let him do so . 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) the price b. Since the company is operating below is full capacity, what cost term used in the chapter might be the most applicable in this situation Opportunity cost Sunk cost Relevant cost