The following accounts are found in the ledger of Bataan Leather Factory:

a. Depreciation of Machinery b. Bad Debts c. Power Expense d. Building Insurance Expense e. Factory Repairs f. Legal Expenses g. Freight Out h. Advertising Expense i. Depreciation of Building j. Freight In

k. Sales Commission l. Office Supplies Used m. Delivery Truck - Insurance Expense n. Janitorial Services o. Depreciation of Office Equipment p. Factory Supervisors Salary q. Representation Expense of the Company President r. Factory Supplies Used s. Water Expense

1. Identify the direct costs of the manufacturing department, distribution department, and administrative department.
2. There are costs which are common to all departments. What are these and how will you allocate these costs?