Exercise A: Classification of manufacturing costs (Value: 8 points)

Bike Inc. is a small company that builds custom bikes to customer specifications and operates out of a small facility that used to be a warehouse. The parts and parts of the bicycles are supplied by different manufacturers. Some of the costs incurred by the factory are presented below. It indicates the classification of costs in the following categories: direct materials (MD), direct labor (MOD), indirect costs (CI), administrative costs (CA) or sales costs (CV).

1. Salary of employees who manufacture bicycles

2. Rental of the premises

3. Cost of aluminum bicycle frames

4. Cost of ads in local magazines

5. Accountant's salary

6. Salary of the purchasing and manufacturing supervisor

7. Depreciation of tools

8. Commissions paid to sellers