Directions: Read and understand the case/scenario ,use the given information to provide your answer.

(20 marks)

Consider the following information:

Porter Company manufactures furniture, inclusing tables.Selected costs are given below:

The table are made of wood that cost $100 per table

The table are assembled by workers, at a wage cost of $ 40 per table

Workers assembling the tables are supervised by a factory supervisor who is paid $45,000 per year.

Electirical costs are $2 per machine hour.Four machine-hours are required to produce a table.

The depreciation on the machines used to make the tables totals$10,000 per year.The machines have no resale value and do not wear out through use.

The salary of the president of the company is $ 200,000 per year.

The company spends $250,000 per year to advertise its products.

Salespersons are paid a commissions of $ 30 for each table sold.

Cost of electricity to run the machines.

Instead of producing the tables, the company could rent its factory space for $ 50,000 per year.

Required:

Classify these costs according to the various cost terms such as 1. Variable cost2. Fixed cost3. Selling and Administrative cost4. Direct Materials5. Direct Labour6. Manufacturing Cost7. Sunk cost8. Opportunity cost . Carefully study the classification of each cost.