o AT&T LTE 11:33 PM Problem 1 Thomas plans to set up a business that builds custom house for high net-worth customers in Upstate NY on January 1, 2018 He would borrow S1,500,000 from a bank to invest in the business as star-up capital. As a CEO, he will get a monthly salary of S10,000/month. Cost Classification (Assignment #1) Here is the list of some related items or products that he would need to start the business: - Lumber - Roof - Concrete - Insulation - Ducting - Paint Corporate office building He needs to hire you as an accountant to help his financial and accounting work, and hires one supervisor who is in charge of the supervision of building custom houses. His business' cost drivers are provided in Table 1 Required: Thomas needs your help in classifying the various costs. In order to manage these costs, he wants them identified using the information below. He asked that you use Table 2 for your answers a) Behavior: fixed or variable cost b) Traceability: direct or indirect c Financial reporting: product or period d) If product cost, identify which items are direct materials, direct labor or manufacturing overhead. Costing Systems (Assignment #2) Thomas discussed the business plan with you. He was told that there are three different types of costing systems that exist in organizations-job order, process costing and activity based costing Required: Which type of costing system is his business most likely to use? Discuss