Applewhite Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct? 1. The cost of the direct materials in Applewhite's products is considered a variable cost. The cost of the depreciation of Applewhite's plant machinery is considered a variable cost because Applewhite uses an accelerated depreciation method for both book and income tax purposes. III. The cost of electricity for Applewhite's manufacturing facility is considered a fixed cost, even if the cost of the electricity has both variable and fixed components. I, II, and Ill are correct. I only is correct. * 3. Il and ill only are correct. 4. None of the listed choices is correct. . 1. 2