Enter the dollar amount of each cost item

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Reference no: EM131591138

Problem - Cost Classification and Cost Behavior

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 4,000 sets per year. Annual cost data at full capacity follow:

Direct labor

$90,000

Advertising

$102,000

Factory supervision

$68,000

Property taxes, factory building

$17,000

Sales commissions

$65,000

Insurance, factory

$6,000

Depreciation, administrative office equipment

$3,000

Lease cost, factory equipment

$15,000

Indirect materials, factory

$17,000

Depreciation, factory building

$104,000

Administrative office supplies (billing)

$5,000

Administrative office salaries

$107,000

Direct materials used (wood, bolts, etc)

$433,000

Utilities, factory

$41,000

Required -

Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways; first, as variable or fixed with respected 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).

Cost item

Cost Behavior

Selling or Administrative Cost

Product Cost

Variable

Fixed

Direct

Indirect

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 Cost

 

 

 

 

 

Reference no: EM131591138

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