Intel Corporation manufactures computer processors using mixed costing. In March 2034, the company incurs the following costs related to its production and distribution:

• Direct Materials: $500 million
• Direct Labor: $300 million
• Factory Overhead: $200 million
• Selling Expenses: $100 million
• Distribution Expenses: $80 million
• Indirect Labor: $120 million

Required:

• Classify each cost as direct, indirect, fixed, variable, or semi-variable.
• Allocate factory overhead ($180 million) and indirect labor ($100 million) costs to production and distribution activities.
• Analyze the cost structure and profitability of Intel Corporation using mixed costing.