EX 18-8 Classifying costs OBJ. 2, 3 The following report was prepared for evaluating the performance of the plant manager of Farrar Inc. Evaluate and correct this report. Farrar Inc. Manufacturing Costs For the Quarter Ended June 30, 2014 Materials used in production (including Direct labor (including $93,750 maintenance salaries). . . . . . . . Factory overhead: 625,000 Heat, light, and power... Sales salaries Promotional expenses.. Insurance and property taxes-plant Insurance and property taxes-corporate offices... Depreciation-plant and equipment . 575,000 156,250 387,500 350,000 168,750 243,750 137,500 100,000 $3,418,750