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Company president's salary
Eggs, salt, water used for baking
Depreciation expense on bake ovens
Paper wrappers for bread
Factory lease
Advertising costs
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