Milestone One - Cost Classification INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. The Fixed and Variable cost classifications have been provided for you. . Direct Material Direct Labor Overhead Period Costs Fixed Variable X * Item/Cost ---------- Salary - Collar maker ---------- Salary - Leash maker ----------- Salary - Harness maker -------- Salary - Receptionist -------------- ------ang nyie webbing ---- Polyesterylon ribbons -------------- Buckles made of cast hardware ------------- ------- Depreciation on sewing machines --------- Rent --- Utilities and insurance ------------ Scissors, thread, and cording ------ Price tags ------- Office supplies --- Oter business equipment ---------- Loan payment -------- Salary to self Price tags directly relate to products. . Office supplies do not relate to making the product. Instead, this would be more like a selling and administrative type expense. What type of expense is that? Other business equipment does not relate to making the product. Instead, they would be more used in a selling and administrative manner. What type of expense is that? Per the prompt, loan payments should be accounted for in your costs. However, they would be an indirect cost that gets allocated based on a cost driver. What type of cost requires us to allocate? Per the prompt, our salaries are to be divided among the services (like an indirect cost). What would that be