Manufacturing Manufacturing Variable or Administrative (Product) Cost (Product) Cost Cost Item Fixed Selling Cost Cost Direct Indirect Yes Example: Direct labor Variable Example: Executive salaries Fixed Yes Fixed Yes Example: Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's 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. Thread in a garment factory. 14. Executive life insurance 15. Ink used in textbook production. 16. Fringe benefits, materials handling workers. 17. Yarn used in sweater production. + 18. Wages of receptionist, executive offices.