Johnson Controls International plc manufactures building systems using mixed costing. In August 2030, the company incurs the following costs related to its production and distribution:

• Direct Materials: $100 million
• Direct Labor: $60 million
• Factory Overhead: $40 million
• Selling Expenses: $20 million
• Distribution Expenses: $15 million
• Indirect Expenses: $25 million

Required:

• Classify each cost as direct, indirect, fixed, variable, or semi-variable.
• Allocate factory overhead and indirect expenses to production and distribution activities.
• Analyze the cost structure and profitability of Johnson Controls International plc.
• Discuss the impact of cost allocation on decision-making.
• Prepare a mixed costing statement for Johnson Controls International plc.