Chapter 1 Cost Classifications 1) Listed below are costs of providing an airline service. Classify each cost as either variable or fixed AND either direct or indirect. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time. Cost Variable or Fixed Direct or Indirect Advertising Beverages served on planes Regional vice president salary Depreciation (straight-line) on ground equipment Fuel used in planes Flight attendant wages Pilot wages Aircraft maintenance manager salary 2) Select costs related to Apple's iPhone are listed below. Identify each cost as either direct materials, direct labor, manufacturing overhead, or selling and administrative expenses. Then, identify each cost as a product or period cost. Cost Display screen Assembly-line supervisor salary Wages for assembly workers Salary of the chief executive officer Glue to hold iPhone cases together Uniforms provided for each factory worker Wages for retail store worker Depreciation on robotic equipment used in assembly DM, DL, OH or Period or Product S&A Fill in the Blank Specify whether each of the above accounts would appear on the balance sheet or on the income statement at the year end. . Raw Materials Inventory- Work in Process Inventory- Finished Goods Inventory - Cost of Goods Sold - Selling Expense - Dog Eared Books In August, Dog Eared Books, a local bookstore, sold 4,450 books totaling $126,825 of sales. The store incurred variable selling expenses of $1.20 per book and variable administrative expenses of $3.30 per book. Fixed selling expense totaled $6,000, and fixed administrative expense totaled $8,000 for the month. The store purchased additional inventory of books during the month costing $62,000. At the beginning of August, the inventory account balance was $36,000, and at the end of the month the account balance was $29,000. Cost of goods sold is a variable cost at Dog Eared Books. Please prepare a traditional format income statement for Dog Eared Books for the month of August. (The income statement should include all necessary account titles and proper formatting.) 2. Please prepare a contribution format income statement for Dog Eared Books for the month of August. (The income statement should include all necessary account titles and proper formatting.)