value:00 points Problem 2-3 Identifying Costs, Cost Concepts (LO1 - CC1, 2; LO2 - CC3, 4; LO4 - CC7, 9) The Mahela Company specializes in producing...

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2.value:10.00 pointsProblem 2-3 Identifying Costs, Cost Concepts (LO1 - CC1, 2; LO2 - CC3, 4; LO4 - CC7, 9)The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and fourchairs. The company has ample orders to keep production going at its full capacity of 3,400 sets perquarter. Quarterly cost data at full capacity follow:Factory labour, direct$ 125,000Advertising51,400Factory supervision41,400Property taxes, factory building4,900Sales commissions87,000Insurance, factory3,900Depreciation, office equipment5,400Lease cost, factory equipment13,400Indirect materials, factory7,400Depreciation, factory building11,400General office supplies (billing)4,400General office salaries67,000Direct materials used (wood, bolts, etc.)101,000Utilities, factory21,400