Google LLC provides online services using mixed costing. In May 2032, the company incurs the following costs related to its production and distribution:

• Direct Materials: $130 million
• Direct Labor: $75 million
• Factory Overhead: $50 million
• Selling Expenses: $30 million
• Distribution Expenses: $20 million
• Indirect Labor: $25 million

Required:

• Classify each cost as direct, indirect, fixed, variable, or semi-variable.
• Allocate factory overhead and indirect labor costs to production and distribution activities.
• Analyze the cost structure and profitability of Google LLC using mixed costing.
• Discuss the impact of cost allocation methods on financial reporting.
• Prepare a mixed costing statement for Google LLC.