Exercise $1-2($Static$)$ Classifying Manufacturing Costs $[$LO$1-2]$

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its

assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some

of the costs the company incurs.

Required:

For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or

an administrative cost.