Q.1 a) Why might a company claim that the total cost of employing a person is $15.30 per hour when the employee's wage rate is $10.50 per hour? How should this difference be classified and why? (04 marks) b) Explain why the income statement of a manufacturing company differs from the income statement of a merchandising company? (04 marks) c) Assume Domino's Pizza is considering offering a new product, a 6-inch pizza. Why would it matter if Domino's Pizza knows how much it costs to produce and deliver this 6- inch pizza? (04 marks) d) The following costs are incurred by an electrical appliance manufacturer. Classify these costs as direct materials, direct labor, and manufacturing overhead, selling, or administrative costs. (i) President's salary. (01 mark) (ii) Cost of electrical wire used in making appliances. (01 mark) (iii) Cost of janitorial supplies (the janitors work in the factory). (01 mark) (IV) Wages of assembly-line workers. (01 mark) (v) Cost of promotional displays. (01 mark) (vi) Assembly-line supervisor's salary. (01 mark) (vii) Cost accountant's salary (the accountant works in the factory). (01 mark) (viii) Cost of cleaner used to clean appliances when they are completed. (01 mark) (ix) Cost of aluminum used for toasters. (01 mark) (x) Cost of market research survey. (01 mark) e) Classify the costs listed in (d) above as either product costs or period costs. (10 marks)