Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year.

Direct material.......................................................... $4,500,000

Direct labor................................................................ 3,300,000

Manufacturing overhead:

Utilities (primarily electricity)................................... 210,000

Depreciation on plant and equipment....................... 345,000

Insurance................................................................... 240,000

Supervisory salaries................................................... 450,000

Property taxes........................................................... 315,000

Selling costs:

Advertising.............................................................. 292,500

Sales commissions.................................................... 135,000

Administrative costs:

Salaries of top management and staff....................... 558,000

Office supplies.......................................................... 60,000

Depreciation on building and equipment................. 120,000

During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing manager, forecasts a 30 percent growth in sales over the 20x4 level.

Required:

Categorize each of the costs listed above as to whether it is most likely variable or fixed.

Forecast the 20x5 cost amount for each of the cost items listed above.