Please provide correct answer and thanks in advance okntencesCaw11The Dorilane Company produces a set of wood patio furniture consisting of a table and fourcustomer demand to justify producing its full capacity of 3,800 sets per year. Annual cost datDirect laborAdvertisingFactory supervisionProperty taxes, factory buildingSales commissionsInsurance, factoryDepreciation, administrative office equipmentLease cost, factory equipmentIndirect materials, factoryDepreciation, factory buildingAdministrative office supplies (billing)Administrative office salariesDirect materials used (wood, bolts, etc.)Utilities, factory$$$per set$$73,00017,00058,0007,000$2,000$ 13,000$ 20,000$ 104,0005,000< Required 1$95,00097,000Required:1. Enter the dollar amount of each cost item under the appropriate headings. Note that each costvariable or fixed with respect to the number of units produced and sold; and second, as a sellingcost. (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 prodor remain unchanged?$$ 107,000$ 433,000$ 41,000Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Compute the average product cost of one patio set. (Round your final answer to nearest whole dollar.)Average product costRequired 3 >< Prev1 of 1Next

Cost is classified into two categories: Fixed: It is the cost that remains same as a whole but…

The Dorilane Company produces a set of wood patio furniture consisting of a table and four customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost dal 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 (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 95,000 $ 97,000 $ 73,000 $ 17,000 $ 58,000 $ 7,000 $ 2,000 $ $ $ 13,000 20,000' $ 104,000 $ 5,000 $ 107,ᎾᎾᎾ $ 433,000 $ 41,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost variable or fixed with respect to the number of units produced and sold; and second, as a selling 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 prod or remain unchanged?

The Dorilane Company produces a set of wood patio furniture consisting of a table and four customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost dal 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 (billing) Administrative office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 95,000 $ 97,000 $ 73,000 $ 17,000 $ 58,000 $ 7,000 $ 2,000 $ $ $ 13,000 20,000' $ 104,000 $ 5,000 $ 107,ᎾᎾᎾ $ 433,000 $ 41,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost variable or fixed with respect to the number of units produced and sold; and second, as a selling 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 prod or remain unchanged?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?
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