Factory supervisor salaries Sales commissions Flour used in baking bread
2 . Identify whether each of the items below is a Direct Cost or Indirect Cost : ( 1 / 2 point each , total 5 points )
Factory insurance Baker ' s wages Eggs used for baking Depreciation expense on bake ovens Paper wrappers for bread Cleaning materials for bake ovens Utilities used in factory Factory supervisor salaries Lubricant for factory equipment Flour used in baking bread
3 . Identify whether each of the items below is a Fixed Cost or Variable Cost : ( 1 / 2 point each , total 5 points )
Shipping costs for bread Cost of fuel for delivery truck fleet Factory rent Factory insurance Maintenance on delivery trucks Sales commissions Wages paid to part-time ( hourly ) baker ' s assistant Oven depreciation Cost of fruit for cake topping Factory utilities
Question 4 General Instructions : For this baking operation , you ' ll need to first classify each expense below as direct material , direct labor , indirect material , indirect labor , other manufacturing overhead or period cost , and then answer the calculation questions in Parts 4b - 4e .