Q1

Check my w The Dorilane 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 4100 sets per year. Annual cost data atful capacity follow. Direct labor Advertising Factory evision Property taxes, factory building Sales comission TORTAC, fetery Depreciation, distrative office equipment Leare 001, factory equipment Indirect materials, factory Depreciation factory build Administrative office supplies (billing) Administrative office salaries Direct materiale weed (vood, bolts, so Diltia factory S88,000 $ 105,000 $ 70,000 $ 20,000 160.000 $ 7.000 $1,000 111.000 $ 18,000 3109,000 5 3.000 108,000 $ 43,000 $ 41.000 5 nces 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 fixed with respect to the number of units produced and sold; and second, as a 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 1,000 sets annually Would you expect the average product cost per set to increase, decrease or remain unchanged? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the average product cost of one patie set. (Round your firsal answer to nearest whole dollar)