Classification of Costs The following is a list of costs from the accounting records of Sunshine Pool Management, Inc. Each of Sunshine’s 77 customers owns a pool. Sunshine maintains each customer’s pool by providing supplies, cleaning, and repairs.
1. Life saving supplies
2. Salaries of Sunshine’s managers
3. Pool chemicals
4. Sunshine’s office rental expense
5. Wages of lifeguards
6. Workers’ compensation insurance
7. Training for lifeguards
8. pH testing supplies
9. Office expense, including bookkeeping and clerical
10. Depreciation on cleaning and testing equipment
Required Classify each item as direct or indirect assuming that the cost objects are each of 77 pools.
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