Classifying Costs

The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June $30$

Materials used in production $($including

$$56,200$ of indirect materials$)$

$$607,500$

Direct labor $($including $$84,400$ maintenance salaries$)$

$562,500$

Factory overhead:

Supervisor salaries

$517,500$

Heat, light, and power

$140,650$

Sales salaries

$348,750$

Promotional expenses

$315,000$