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Saved Che Mahela Company specializes in producing sets of wooden patio furniture consisting of currently operating at 80% of its full capacity of 3,300 sets per quarter. Quarterly cost data a $124,500 51,300 41,300 4,800 86, 500 Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales Commons insurance, esory Depreciation of equipsent Lesse cosesor ipsent Indires Baterais, ectory Depreciation, actory building Geners on poides (billing) 5,300 13,30 7.386 11 382 mert 21,389 Required: 1. Enter the dollar amount of each cost Item under the appropriate headings. As examples, this has b Items In the preceding list. Note that each cost Item is classified in two ways: first, as variable or fixed units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the ite be classified as either direct or indirect as shown.) Cost Behaviour Product Cost Item Selling and Administrative Cost Variable Fixed Direct Factory labour, direct s 124,500 $ 124.500 Advertising 51,300 51,300 Factory supervision 41,300 Property taxes factory building 4,800 Sales commissions 86,500 86.500 Insurance. factory 3.800 Depreciation office equipment 5.300 13.300 Lease cost factory equipment 2. Based on the answers obtained in Requirement (1), compute the average product cost per patic decimal places.) Average product cost per patio set 3. Assume that production Increases to only 2.970 sets quarterly. Would you expect the average pre decrease or remain unchanged? 4. Refer to the original data. The president's brother-in-law has considered making a patio set and ha at a building supply store. He has asked the president if he could purchase a patio set from the Mahe president has agreed to let him do so. a. Would you expect any disagreement over the price the brother-in-law should pay? What price does mind? (Round your answer to 2 decimal places.) the president may expect a minimum price of b. Since the company is operating below its full capacity, what cost term used in the situation? Opportunity cost Su cos Recentos