PROBLEM 2-10 Cost Clhoolhcation and Cont Behavlor (LO2, LOB, LOGI The Dorlane Conmpany speclalizes in producing u set of wood patlo furniture consisting of a table and four chnirs. The Not enjoys great popularity, and the company has ample orders to keep produc hon going at Its full capacity of 2,000 sets per yenr. Annual cost data at full capacity follow: Factory labor, direct.. Advortising... Factory suporvision Proporty taxos, tactory bulding Salos commlsslons Insuranco, factory... Doproclation, administrative office oqulpment.. Loaso cost, factory oqulpmont. . Indiroct matorials, factory... Doproclation, factory bullding Adminlstrativo offlco supplles (billing) Àdministratlvo office salarlos..... Direct matorlals used (wood, bolts, otc.) Utilitles, factory... $118,000 $50,000 $40,000 $3,500 $80,000 $2,500 $4,000 $12,000 $6,000 $10,000 $3,000 $60,000 $94,000 $20,000 Required: 1. Prepare an answer sheet with the column headings shown below. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. As examples, this has been done already for the first two items in the list above. 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 cither direct or indirect as shown.) Selling or Administrative Cost Cost Bohavlor Product Cost Cost Item Varlable Flxed Direct Indirect Factory labor, diroct... Advertising. $118,000 $118,000 $50,000 $50,000 "To units of product. 2. Total the dollar amounts in cach of the columns in (1) above. 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 product cost per set to increase, decrease, or remain unchanged? Explain. No computations are necessary,

Assignment Get Homework He Saved Lincoln, Inc, which uses a volume-based cost system, produces cat condos that sell for $170 each, Direct materials cost $21 per unit, and direcd labor costs $17 per unit. Manufacturing overhead is applled at a rate of 200% of direct labor cost. Nonmanufacturing costs are $28 per unt What is the gross profit margln for the cat condos? (Round your Intermedlate calculatlons to nearest whole dollar.) Multiple Cholce 58.8% 57.6% 41.3% 41.2%

only give me an answer for requirement 3

Exercise 21.5 (Static) Special Order Decisions and Opportunity Costs (LO21-1, LO21-2, LO21-3, L021-4) Heavenly Treat manufactures cases of hot chocolate that are typically sold to restaurants. Its main factory has the capacity to produce and sell 12,000 cases per month. The following information is available for the factory. Sales price per case Variable cost per case: Direct materials Direct labor Variable overhead & sales commissions Fixed costs per month 40 12 10 $ 60,000 Wildwood Camps is a youth organization that serves hot chocolate at its camping facilities throughout Montana. The organization has offered Heavenly Treat $29 per case for a special-order batch of 1,000 cases. Each case would require a shrink-wrap covering because of moisture problems associated with the organization's storage warehouses. The cost to shrink-wrap the order is estimated at $3 per case. Selling costs associated with the order would be decreased by $1 per case because it would not include any sales…