kindly solve this question(A,B)

Franco Wood Working is an owner-operated business started in 1964, shortly after Franco Marzec arrived in Canada. The company started with just Franco producing railings and posts for stairways in residential buildings. The company has grown to three employees: Franco, his brother Joe, and one other person. The business has expanded beyond its original business and now also installs the materials in customer homes. Franco is able to generate all of his business through referrals; sales are all within the Greater Toronto Area. The company's sales volume averages $1 million each year, and profits vary between 5% and 20% of sales. Recently, many more producers have been opening similar businesses in the Toronto area. As a result of this increased competition, Franco is focusing on the company's customer bidding process, when a bid is lost, he reviews the bids with his potential customer to analyze the differences compared to his competitor. His goal is to improve successful outcomes of future bids. Franco is not confident with his company's accounting system and he believes it is leading to inaccurate bids. Currently, all expenses are simply deducted from revenues to arrive at operating income. No effort is made to distinguish among the costs related to manufacturing materials, managing customers, and administrative activities at the company. With the goal of improving the current situation, Franco reviewed the income statement for the previous year in great detail (see below). In his analysis, he noted that jobs were priced on the basis of machine hours, with an average price of $850 per machine hour. However, when it came to classifying and assigning costs, he decided that he needed some help. In particular, he is unsure of how to classify his own $90,000 salary. About one third of his time was spent on generating bids for potential contracts, one third was spent in general administrative matters, and the final third was spent supervising production staff Franco Wood Working Income Statement For the Year Ended December 31, 2014 Sales (1,176 machine hours @ $850/hour) $999,600 Less expenses: Utilities Machine operators Rent, finished product warehouse Accounting fees Office salaries Other direct labour Wood raw materials Supervisory salaries Depreciation, woodworking tools Delivery costs Showroom operation Total expenses Income before income taxes $65,000 60,000 24,000 3,000 24,000 65,700 501,340 90,000 18,600 16,300 3,200 871.140 $128.460 Required: (A) Classify the costs in the income statement into the following categories: (1) Production Costs. (2) Selling Costs, or (3) Administrative Costs. For production costs, identify them as either Direct Materials (DM). Direct Labour (DL), or Overhead (OH). Work in Process is not significant (most jobs are started and completed within a week) (B) Assume that a significant driver is machine hours. Identify the expenses that would likely be traced to jobs using this driver. Explain why you feel these costs are traceable using machine hours. What is the cost per machine hour for these traceable costs