Classify each of the following as direct or indirect (D or I) with respect to trace ability to product and as variable or fixed (V or F) with respect to whether the cost fluctuates in total as activity or volume changes over wide ranges of activity. You will have two answers, D or I and V or F, for each of the 10 items.

1. Supervisor training program

2. Abrasives (sandpaper, etc.)

3. Cutting bits in a machinery department

4. Food for a cafeteria

5. Factory rent

6. Salary of a factory storeroom clerk

7. Workers’ compensation insurance in a factory

8. Cement for a road builder

9. Steel scrap for a blast furnace

10. Paper towels for a factory washroom