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1. Classify the costs in the items below using the following format below. Identify the right answer and put an X Item Direct Direct S

1. Classify the costs in the items below using the following format below. Identify the right answer and put an X Item Direct Direct S Material Labor S (Produc (Product Cost) t Cost) Manufacturin Period Cost g Overhead (Product Cost) (Sellin g cost) Period Cost (Administrativ e cost) Opportunit Sunk Differential y Cost Cost Cost CD Company is a shirt manufacturing company producing and selling different types of shirts to customers around the world. Some of their cost items are listed below: 1. Materials used in producing the shirts. 2. The threads used in sewing the shirts. 3. The labor costs for each type of shirt in the manufacturing division. 4. The factory supervisor's salary for the manufacturing division. 5. Rent on office building. 6. The cost of equipment purchased five years ago which is no longer usable. 7. The cost of manufacturing buttons compared with the cost of buying them from external supplier. 8. The rent foregone due to the decision to use the factory space rather than renting it. 9. The sales commission paid to the sales people. 10. Depreciation on equipment used to manufacture the shirts. 11. Heat, water and power used in the factory. 12. The salary of the accountant 13. The lease cost of the building which is used for administrative and manufacturing purpose. 14. The boxes which are used to package the shirts. 15. The cost of shipping the boxes of shirts to the customers

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