Using the first screen shot answer all the following questions and give an explanation for each.

Part 2. Fixed the variable cost C per unit. The company currently calculates the value of using the following formula in Exhibit 2: C= (materials cost )+( bottling labor )+( fixed overhead allocation )+( variable overhead ) +( customs duty )+( federal distilled spirits tax) + (federal rectification tax). Please choose which item should be excluded or included in this formula. Please discuss your recommendations for correcting this calculation and explain your reason. The cost item attributable to "bottling labor" should be from the overall variable cost, C. Excluded Included The cost item attributable to "fixed overhead allocation" should be from the overall variable cost, C. Excluded Included The cost item attributable to "variable overhead" should be from the overall variable cost, C. Excluded Included The cost item attributable to "customs duty" should be from the overall variable cost, C. Excluded Included The cost item attributable to "federal distilled spirits tax" should be from the overall variable cost, C. Excluded Included The cost item attributable to "federal rectification tax" should be from the overall variable cost, C. Excluded Included