Explain what horizontal analysis on the Income Statement would tell you about Sales Revenue. 3 Explain what vertical analysis on the Balance Sheet would tell you about the Cash account The three major categories of product costs are direct materials, direct labor and manufacturing overhead. Assume you are the owner of a cookie company. a) What are three items that would be considered direct materials? What are three items that would be considered manufacturing overhead 5. You are the owner of a cookie company. Determine whether each of the following items is a fixed cost, variable cost or mixed cost when determining the cost of a cookie. Cost of flour:_ b) Salary of baker who is paid $3,000 per month: Cost of water which is $100 per month plus $10 per 1000 gallons Wages of temporary workers who are paid $12 per hour Insurance expense which is $5,000 per year d)