Chapt 2 hw - 1. award: 8.61 out of 10 points The Dorilane...

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1. award: 8.61 out of 10 points 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 4,200 sets per year. Annual cost data at full capacity follow: Factory labor, direct $87,000 Advertising $105,000 Factory supervision $70,000 Property taxes, factory building $16,000 Sales commissions $56,000 Insurance, factory $5,000 Depreciation, administrative office equipment $3,000 Lease cost, factory equipment $10,000 Indirect materials, factory $19,000 Depreciation, factory building $101,000 Administrative office supplies (billing) $5,000 Administrative office salaries $110,000 Direct materials used (wood, bolts, etc.) $435,000 Utilities, factory $42,000 Requirement 1: Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Cost behavior Selling or Administrative Product Cost Cost item Variable Fixed Cost Direct Indirect Factory labor, direct $ $ $ $ $ Advertising
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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
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This note was uploaded on 06/11/2011 for the course ACCT 203 taught by Professor King during the Spring '09 term at Shoreline.

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Chapt 2 hw - 1. award: 8.61 out of 10 points The Dorilane...

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