The Outdoor Dining Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 2,000 sets per year. Annual cost data at full capacity follow:

Direct labour	$	180,200
Advertising	$	37,300
Factory supervision	$	46,900
Property taxes, factory building	$	6,900
Sales commissions	$	54,300
Insurance, factory	$	2,900
Depreciation, administrative office equipment	$	3,200
Lease cost, factory equipment	$	13,900
Indirect materials, factory	$	2,700
Depreciation, factory	$	22,400
Administrative office supplies	$	1,900
Direct materials used (wood, bolts, etc.)	$	52,200
Utilities, factory	$	25,700

Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold, and second, as either 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.) 2. Compute the average product cost per patio set. (Round your answer to 2 decimal places.) 3. Due to reduced demand, assume that production drops to only 1,000 sets per year. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged? Increase Decrease Remain unchanged