. Enter the dollar amount of each cost item under the dp tems in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the nu units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions 2$ 126,500 2$ 126,500 51,700 51,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs
. Enter the dollar amount of each cost item under the dp tems in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the nu units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions 2$ 126,500 2$ 126,500 51,700 51,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The company is currently operating at 80% of its full capacity if 3700 sets per quarter

Transcribed Image Text:Required:
1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two
items in the preceding list 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 or a product cost. (If the item is a product cost, it should also
be classified as either direct or indirect as shown.)
Selling and
Administrative
Cost
Cost Behaviour
Product Cost
Cost Item
Variable
Fixed
Direct
Indirect
Factory labour, direct
Advertising
24
126,500
24
126,500
51,700
51,700
Factory supervision
Property taxes, factory building
Sales commissions
Insurance, factory
Depreciation, office equipment
Lease cost, factory equipment
Indirect materials, factory
Depreciation, factory building
General office supplies (billing)
General office salaries
Direct materials used (wood, bolts, etc.)
Utilities, factory
Total costs
*To units of product.

Transcribed Image Text:The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and
currently operating at 80% of its full capacity of 3,700 sets per quarter. Quarterly cost data at this level of operations follow:
Factory labour, direct
Advertising
Factory supervision
Property taxes, factory building
Sales commissions
$126,500
51,700
41,700
5,200
88,500
4, 200
5,700
13,700
Insurance, factory
Depreciation, office equipment
Lease cost, factory equipment
Indirect materials, factory
Depreciation, factory building
General office supplies (billing)
General office salaries
Direct materials used (wood, bolts, etc.)
Utilities, factory
7,700
11,700
4,700
68,500
102,500
21,700
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