Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $68,800 of indirect materials) $742,800 Direct labor (including $103,200 maintenance salaries) 687,800 Factory overhead: Supervisor salaries-plant Heat, light, and power-plant 632,800 172,000 Sales salaries 426,400 Promotional expenses 385,200 Insurance and property taxes-plant 185,700 Insurance and property taxes-corporate offices 268,200 Depreciation-plant and equipment 151,300 Depreciation-corporate offices 110,000 Total $3,762,200 a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $103,200 and indirect materials of $68,800 should be included as factory overhead. 2. The indirect materials of $68,800 should be included as factory overhead. 3. The maintenance salaries of $103,200 should be included as factory overhead. 4. Half of the maintenance salaries of $103,200 and indirect materials of $68,800 should be included as factory overhead.