Part : Identify if each is indirect or direct cost

Material used in production:

Salary of manufacturing supervisor:

Wages of manufacturing worker:

Telephone costs:

Rent:

Part 2: GH Company is trying to decide whether to replace a current piece of machinery with a new machine. Using the below data, determine the relevant costs of the old machine and the new machine. Should GH Company purchase the new machine, why or hy not?
						Old Machine	New machine
Original cost	100,000
Accumulated depreciation	(50,000)
Book value	50,000
Market value (now)	25,000	30,000
Salvage value (in 5 years)	5,000	8,000
Annual depreciation expense	11,000
Operating expenses
Per year	9,000	4,500
Times number of years	4	4
Total operating expenses	36,000	18,000