COST CLASSIFICATION

12 points

Classify each of the following costs as: direct materials (DM), direct labor (DL), factory overhead (FO), selling expense (S) or administrative expense (A). Place the code of DM, DL, FO, S, or A on the line to the left of each cost.

1.	Subscription to "The Wall Street Journal" for executive lounge.

2.

Salary of the Director of Internal Auditing.

3.

Long-distance telephone bill for calls made by salespersons.

4.

Cotton for a textile manufacturer of blue jeans.

5.

Steel for a construction contractor.

6.

Electricity used to operate factory machinery.

7.

Gloves for factory machine operators.

8.

Fees paid to lawn service for office grounds.

9.

Salary of secretary to vice-president of marketing.

10.

Production supervisor's salary.

11.

Depreciation on factory equipment.

12.

Cost of a radio commercial.