Classifying xed and variable costs Classify each of the following items of factory overhead as either a xed or a variable cost. (Include any costs that you consider to be semivariable within the variable category. Remember that variable costs change in total as the volume of production changes.)

a. Indirect labor

b. Indirect materials

c. Insurance on building

d. Overtime premium pay

e. Depreciation on building (straight-line)

f. Polishing compounds

g. Depreciation on machinery (based on machine hours used)

h. Employers payroll taxes

i. Property taxes

j. Machine lubricants

k. Employees hospital insurance (paid by employer)

l. Labor for machine repairs

m. Vacation pay

n. Janitors wages

o. Rent p. Small tools

q. Plant managers salary

r. Factory electricity

s. Product inspectors wages