Question
The outdoor dining company specialize in producing a set of wood patio furniture, consisting of tables and four chairs. The set about you enjoys great
The outdoor dining company specialize in producing a set of wood patio furniture, consisting of tables and four chairs. The set about you enjoys great popularity and the company has ample orders to keep production going. Its full capacity of 1900 sets per year. Annual cost data at full capacity follow: Direct labour. $207,000 Advertising $40,600 Factory Supervision $42,400 Property taxes, factory building $6,300 Sales commissions $49,100 Insurance, factory $2,200 Depreciation, administrative office equipment $2,600 Lease cost, factory equipment $14,900 Indirect materials, factory $2,800 Depreciation, factory. $29,300 Administrative office supplies $2,100 Direct materials used ( wood, bolts, etc.) $48,900 Utilities, factory $27,800 Required:
Enter the dollar amount of each cost item under the appropriate heading. Note that each cost item is satisfied in two ways first in either variable or fixed with respect to the number of units, produced, and sold in the second as either selling and administrative cost or project product cost.
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