Help Save & Exit Proctoring Enabled MGMT8SQ0 - Midterm Exam - Monday 4 The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of Its full capacity of 2.400 sets per quarter Quarterly cost data at this level of operations follow, Bestory evervision Fregerty tams, Factory building Insurance. factory Depreciation, office soulbornt 1,409 Lense ceit, Factory caulisent 12 2409 Bestinect materials, factory 5. Cia Depreciation, factory building General office supplies (Billing) General office salaries Direst materials used (wood, belts, etc.) utilities, factory 100% Required: 1. Ender the dollar amount of each cost item under the appropriate headings As examples, this has been done already for the first two tems in the preceding list, Note that each cost hem is classfiled in two ways. first. as variable of 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.) Cost Behaviour Selling and Product Cost Administrative Variable Cost Direct 5 120 000 120,000 50:400 50.400Help Save & Exit Submit Proctoring Enabled: MGMT8500 - Midterm Exam - Monday Contitam Variable Fixed Cast Direct Indirect 4 120,090 120,000 Andvertmang 50.400 50 400 Hippert, taunt factory budding Limin cant to doty equipment SeerT rate gu's used wood, bolts ofe 100% 5 120 000 5 50 400 5 50 400 5 120,000 beencal moduct 2. Based on for answers obtained in Requirement (1. compute the average product cost per patio set. (Round your answer to 2 For purto SetHelp Save & Exit Submit Proctoring Enabled MGMT8500.Midterm Exam - Monday "To wonits of product 4 2. Based on the answers obtained in Requirement (1. compute the average product cost per patio set. (Round your answer to 2 decimal places) pet patio set 100% 3. Assume that production increases to only 2.160 sets quarterly Would you expect the average product cost per patio set to increase. decrease, of remain unchanged? O increase O Decrease Remain unchanged 4 bieder to the priginal dida The president's brother in law has considered making a patio set and has priced the necessary materials if a building wipply store. He has asked the president if he could purchase a patio set from the Mahela Company "at cost," and the widevetoes aggieed to bet fam do so. would you expect any disacy cement over the price the brother-in law should pay? What price does the president probably have in and hope your prower up 2 decimal places.)Help Save & Exit Submit Frestoring Enabled MGMT8500 - Midterm Exam - Monday O'Increase 4 O Decrease Remain unchanged 19 4. Refer to the original data, The president's brother in law has considered making a patio set and has priced the necessary materials al a building supply store. He has asked the president if he could purchase a patio set from the Mahela Company "at cost," and the 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 the president probably have in itto mind? (Round your answer to 2 decimal places.) To president may supoct a munimum price of + 100%% b. Since the company is operating below its full capacity, what cost term used in the chapter might be the most applicable in this Opportunity cost O Sock cost