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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 4.200 sets per year Annual cost data at full capacity follow Direct labor Advertising 510.000 Factory supervision 199,000 $ 67,000 Property taxes, factory building $ 25,000 Sales comissions $ 64,000 Tarsurance, factory $ 8.000 Depreciation, administrative office equipment $ 2.000 Lease cost, factory equipment 5.19.000 Indirect materials. factory $ 10, Depreciation factory building 109,000 Administrative office supplies (ing) 55,00 Administrative office salaries 1 100,00 Direct materials used wood. bolts, etc.) 16.00 utilities, factory 54.00 Required: 1. Enter the dollar amount of each cost item under the appropriate headings Note that each cost to closed in a way variable or foxed with respect to the number of units produced and sold and second assing and admite coproduct cost of 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 verge oroduct cost personale decat or remain unchanged? Sand Help Save & Exit Su fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be dassified as either direct or indirect.) Cost Item Cost Behavior Period (Selling of Administrative) Cost Product Cost Variable Fixed Direct Indirect 0 Direct labor Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect materials factory Depreciation factory building Administrative office supplies (bitling Administrative office salaries Direct materials used wood boltsetc Utilities, factory Total costs Required 2 > Required 1 Required 2 Required 3 Compute the average product cost of one patio set. (Round your final answer to ne Average product cost per set 5:46 Required 1 Required 2 Required 3 Assume that production drops to only 1,000 sets annually. Would you expect the a decrease, or remain unchanged? Increase Decrease ORemain unchanged

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