Problem 1-23 Cost Classification (LO1-1, LOT-3, L01-4] Listed below are costs found in various organizations. Required: 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 is a direct cost or an indirect cost with respect to units of product Variable or Administrative Selling Cost Cost Item Direct Indirect Fixed Cost Ex. Direct labor Variable Yes Fixed Executive salaries Yes Factory rent Fixed Yes 1. Property taxes, factory. Fixed Yes 2. Boxes used for packaging detergent produced by the company. Yes Variable 3. Salespersons' commissions Variable Yes Supervisor's salary, factory. 4 Fixed Yes Depreciation, executive autos. 5 Fixed Yes 6.Wages of workers assembling computers. Variable Yes Insurance, finished goods warehouses. Fixed Yes 7 8 Lubricants for production equipment. Variable Yes Advertising costs. Fixed Yes 9 10. Microchips used in producing calculators. Variable Yes 11. Shipping costs on merchandise sold. Yes Variable 12. Magazine subscriptions, factory lunchroom. Fixed Yes 13. Thread in a garment factory. Variable Yes 14. Executive life insurance Fixed Yes 15. Ink used in textbook production Variable 16. Fringe benefits, materials handling workers. Fixed Yes 17. Yam used in sweater production. Variable Yes 18. Wages of receptionist, executive offices. Fixed Yes