(b) Classify whether the items below refer to direct material cost (DM), direct labour cost (DL), or production overhead cost (POH). (i) Wages of production line workers. (ii) Maintenance of machineries. (iii) Purchase of direct materials. (iv) Purchase of loose tools. (v) Freight charges on direct materials. (vi) Factory light and power. (vii) Wages of factory supervisor. (viii) Depreciation on plant. (ix) Lubricating oil for machine. (x) Hire of special machine. (5 marks) Sangkar Biru Sdn Bhd makes small bird houses that sells at RM32.00 each. The company's level of production and sales is 145,000 units. The company has a pre-tax income of RM1,620,450. In addition to RM530,500 of fixed manufacturing overhead and RM169,050 of fixed administrative expenses, the following per unit costs as in Table Q2 have been determined for each bird house. Table Q2: Cost Information for One Unit Bird House (i) The company's degree of operating leverage. (3 marks) (ii) The percentage of increase in income when sales increase by 20 percent. (2 marks) The company has received an offer from a Singaporean company to buy 6,000 bird houses at RM28.00 per unit. The new per unit variable selling cost of the additional units will be RM3.00, and RM24,000 of fixed administrative cost will be incurred. The sale would not affect the domestic sales or their cost. Analyse whether Sangkar Biru should accept this offer. (12 marks)