Listed below are costs found in various organizations. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product. Three sample answers are provided for illustration. (Hint: Any benefits given to the workers are added in their wages)(If a cost classification is not application to a cost item, leave the cell blank.)
Manufacturing (Product) Cost
Cost Item	Variable or Fixed	Selling Cost	Administrative Cost	Direct	Indirect
Ex.	Direct labor	Variable	Yes
Executive salaries	Fixed	Yes
Factory rent	Fixed	Yes
1.	Property taxes, factory.
2.	Boxes used for packaging detergent produced by the company.
3.	Salespersons commissions.
4.	Supervisors salary, factory.
5.	Depreciation, executive autos.
6.	Wages of workers assembling computers.
7.	Insurance, finished goods warehouses.
8.	Lubricants for production equipment.
9.	Advertising costs.
10.	Microchips used in producing calculators.
11.	Shipping costs on merchandise sold.
12.	Magazine subscriptions, factory lunchroom.
13.	Lubricants used for machines.
14.	Billing costs (handled by sales department).
15.	Executive life insurance.
16.	Factory heating costs.
17.	Fringe benefits, assembly-line workers.
18.	Yarn used in sweater production.
19.	Wages of receptionist, executive offices.