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ct material, (2) direct-labor. (3) indirect production cials that a company identifies products in an and C. Wages paid to assembly line workers d. Factory rent Example 2: Indicate whether each of the following costs of a pencil manufacturer would be classi direct materials (DM), direct labor (DL), or manufacturing overhead (MO). a. Depreciation of pencil painting machinery overhead b. Lead inserted into pencils C. Factory utilities d. Wages of assembly line worker e. Salary of supervisor f. Factory machinery maintenance g. Wood h . Eraser compound Example 3: A manufacturing company has identified several costs. Indicate whether each of the foll costs is an Inventoriable cost(I) or a Period cost(P): 1. Rent Expense on factory equipment 2. Cost of subassemblies used in producing product