Question: Problem 2-25 Cost Classification and Cost Behavior |LO2-1, LO2-2, LO2-3, LO2-4 The Dore Company species in producing a set of wood patio furniture consisting of


Problem 2-25 Cost Classification and Cost Behavior |LO2-1, LO2-2, LO2-3, LO2-4 The Dore Company species in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the com Director Advertising Factory supervision Property tases, factory building Sales commissions Insurance factory Depreciation, administrative office equipment Lease cost, factory equipment Indirect material actory Depreciation factory building Administrative office supplies Administrative officers Direct materials used wood, bolls, etc.) $ 30.000 $ 102.000 $ 71.000 $ 22.000 50.000 6.000 1,000 17.000 17.000 $ 100 000 4.000 $ 113.000 $ 428.000 $ 44,000 Required 1. En her mot of each com under the appropriate readings. Note that each oostam is classified in two ways: first, as variable or food with resp classified as the director indirect) if your answer is ter leave the cell blank.) Costehavior Period (Selling or Administrative Cost Product Cost Variable Flood Direct Indirect Director Factory supervision Property taxes factory building Ses commission De office Les contractory went Decoracion factory Deadwood boleto) 2. Comutand your heart Type here to search o Cost Direct Indirool 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 Total costs 2. Compute the average product cost of one patio set (Round your answer to nearest whole dollar) Average product cost per 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 Increase Decrease Remain unchanged References eBook & Resources
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