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 $36,000 of indirect materials) Direct labor (including $54,100 maintenance salaries) Factory overhead: Supervisor salaries-plant Heat, light, and power-plant $389,200 360,400 331,600 90,100 Sales salaries 223,400 Promotional expenses 201,800 97,300 140,600 Insurance and property taxes--plant Insurance and property taxes--corporate offices Depreciation--plant and equipment Depreciation-corporate offices 79,300 57,700 Total $1,971,400 a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $54,100 and indirect materials of $36,000 should be included as factory overhead, 2. The Indirect materials of $36,000 should be included as factory overhead 3. The maintenance salaries of 554.100 should be included as factory overhead. 4. Hall of the maintenance sataries of $54,100 and indirect materials of 436,000 should be included as factory overheed. 17 a. 2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead 4. Half of sales salaries, promotional expenses, corporate office Insurance and property taxes, and corporate office depreciation should not be included in factory overhead. Check My Work What is driving the cost? Direct costs are traced to a cost object. Indirect costs are nor direct labor 8 b. Prepare a corrected report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Cost of direct materials used in production Direct labor Factory overhead: Maintenance salaries Indirect materials Supervisor salaries-plant Heat, light, and power-plant Insurance and property taxes-plant Depreciation-plant and equipment 36,000 331,600 90,100 97,300 79,300 Total factory overhead Total Feedback Check My Work Direct materials are the costs of any material integral to the finished product. Employee wages ir nor direct labor. Check My Work