Classifying costs OBJ. 2, 3 The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report.

Marching Ants Inc.

Manufacturing Costs For the Quarter Ended June 30, 2016 Materials used in production (including

$56,200 of indirect materials) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 607,500 Direct labor (including $84,400 maintenance salaries) . . . . . . . 562,500 Factory overhead:

Supervisor salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517,500 Heat, light, and power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,650 Sales salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348,750 Promotional expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,000 Insurance and property taxes—plant . . . . . . . . . . . . . . . . . . . . . 151,900 Insurance and property taxes—corporate offices . . . . . . . . . 219,400 Depreciation—plant and equipment . . . . . . . . . . . . . . . . . . . . . 123,750 Depreciation—corporate offices . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,076,950