2-30 Different Cost Classifications for Different Purposes A machining department has a number of cost accounts. Some accounts selected at random are repro- duced below. Use two columns to classify each account in two ways: Direct or Indirect Product Costs Variable or Fixed Costs D or I V or F An example would be Foreman's salary, I, F. 1. Cutting tools 2. Lubricants 3. Patterns 4. Nails, rivets, etc. 5. Factory rent 6. Repairs 7. Castings 8. Freight in on castings 9. Material handling 10. 25 percent of superintendent's salary 11. Direct labor 12. Idle time 13. Overtime premium 14. Employer payroll taxes 15. Compensation insurance 16. Fire insurance on equipment 17. Depreciation-Equipment 18. Property taxes on equipment 19. Blueprints prepared by drafting department2-30 Different Cost Classifications for Different Purposes A machining department has a number of cost accounts. Some accounts selected at random are repro- duced below. Use two columns to classify each account in two ways: Direct or Indirect Product Costs Variable or Fixed Costs D or I V or F An example would be Foreman's salary, I, F. 1. Cutting tools 2. Lubricants 3. Patterns 4. Nails, rivets, etc. 5. Factory rent 6. Repairs 7. Castings 8. Freight in on castings 9. Material handling 10. 25 percent of superintendent's salary 11. Direct labor 12. Idle time 13. Overtime premium 14. Employer payroll taxes 15. Compensation insurance 16. Fire insurance on equipment 17. Depreciation-Equipment 18. Property taxes on equipment 19. Blueprints prepared by drafting department