Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building for $30,000 per year. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the annex to manufacture a new product 10 Direct materials cost for the new product will total $80 per unit. To have a place to store its finished goods, the company wil rent a small warehouse for $500 per month. In addition, the company must rent equipment for $4,000 per month to produce the new product. Direct laborers willl be hired and paid $60 per unit to manufacture the new product. As in prior years, the space in the annex will continue to be depreciated at $8,000 points r year eBooks The annual advertising cost for the new product wil be $50,000. A supervisor will be hired and paid $3,500 per month to oversee production. Electricity for operating machines will be $1.20 per unit. The cost of shipping the new product to customers will be $9 per unit Print To provide funds to purchase materials, meet payrols, ard so forth, the company will have to lquidate some temporary investments These investments are presently yielding a return of $3,000 per year References Required: Using the table shown below, describe each of the costs associated with the new product decision in four ways. In terms of cost classifications for predicting cost behavior (column 2), indicate whether the cost is fixed or variable for manufacturers (column 3), if the item is a manufacturing cost, indicate whether it is direct materials,, direct labor, or manufacturing overhead. If it is a nonmanufacturing cost, then select "none" as your answer With respect to cost classifications for preparing financial statements (column 4) indicate whether the item is a product cost or period cost. Finaly, in terms of cost classifications for decisions making (column 5), identify any items that are sunk costs or opportunity costs. If you identily an item as an opportunity cost, then select "none" as your answer in columns 2-4 With respect to cost classifications Cost Classifications for Preparings Financial Statements ting Cost Decision Making Cost Item Manufacturers Behavior Renlal revenue forgone, $30,.000 per year Direct materiais cost, $80 per unt Rental cost of warehouse, $500 per monthe Rental cost of equipment, $4000 per month. Direct labor cost, 560 per unit Depreciation of the annex space, 5a,000 per year Adverising cost, $50,000 per year Supervisor's salary, $3,500 per month Electricty for machines, $1.20 per unit Shipping cost, so per unia Relum eamed on investments, $3.000 per yean