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this is three parts. i always rate!! thanks in advance. The Doriane Company produces a set of wood patio furniture consisting of a table and
this is three parts. i always rate!! thanks in advance.
The Doriane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 3,900 sets per year. Annual cost data at full capacity follow Direct labor 314,000 Advertising 95,00 Factory supervision $ 14,000 Property Fotory building $32.00 Sales Comissions $5,000 Instance, factory 6.100 Depreciation, administrative office equipment 3.100 Lease cost factory equipment $19.000 Indirect materials, factory $10.000 Depreciation, factory building $10,000 Administrative office supplies ( be) $4.000 Ministrative office salaries $100,000 Direct sterials used food, bolts, etc.) $420,000 Utilities, factory $4.000 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 variable or foued with respect to the number of units produced and sold and second selling and administrative cost of 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 of one patio set 3. Assume that production drops to only 1000 sets annually Would you expect the overage product cost per set to increase, decrease. or remain unchanged? Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and told; 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.) Period (eding Castim Variable Cost Fixed Cost Direct Product Indiet Behavior Behavior Administrative Cost Product Cost Cout Direct labor Advertising Factory supervision Property taxes, Tactory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials, factory Depreciation factory building Administrative office supplies (biling) Administrative office salaries Direct materials used (wood, balts, etc.) Untities, factory Total costs Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the average product cost of one patio set. (Round your final answer to nearest whole dollar) Average product cont per set Required 1 Menuired 2 Required Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase decrease, or remain unchanged? Increase Decrease Remain unchanged Step by Step Solution
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