Presented below is a list of costs and expenses usually incurred by Ram Corporation, a manufacturer of furniture, in its factory.
1. Metal used in manufacturing tables
2. Insurance on factory machines
3. Leather used in manufacturing furniture
4. Wages paid to machine operators
5. Depreciation of factory machinery
6. Salaries of factory supervisors
7. Wood used in manufacturing furniture
8. Sandpaper, bolts and nails
9. Property taxes on factory building
10. Rent of factory building
Classify the above into the following categories:
(a) direct materials
(b) direct labor and
(c) manufacturing overhead.