Classifying fixed and variable costs LO₁ Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs that you consider to be semivariable within the variable category.)

a. Indirect labor

b. Indirect materials

c. Insurance on building

d. Overtime premium pay

e. Depreciation on building (straight-line)

f. Polishing compounds g. Depreciation on machinery (based on hours used)

h. Employer's payroll taxes i. Property taxes j. Machine lubricants k. Employees' hospital insurance (paid by employer)

I. Labor for machine repairs m. Vacation pay n. Patent amortization o. Janitor's wages p. Rent q. Small tools r. Plant manager's salary s. Factory electricity t. Product inspector's wages