Classification of Costs Following is a list of costs from Oakland Company, a furniture manufacturer:
1. Wood used in chairs
2. Salaries of inspectors
3. Lubricant used in machinery
4. Factory rent
5. Wages of assembly workers
6. Factory workers’ compensation insurance
7. Sandpaper
8. Fabric used for upholstery
9. Property taxes on manufacturing plant
10. Depreciation on machinery
Required Classify each cost as direct or indirect assuming that the cost object is each item manufactured. Also indicate whether each cost is a variable or fixed cost.
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