1A Cost Classification

The following are costs of Big Rig Trucks, a manufacturer of large diesel vehicles.

1.) Aluminum used in manufacturing each trucks body. (variable product direct material)

2.) Factory supervisors salary. (fixed period manufacturing overhead)

3.) Company presidents salary. (fixed period administrative)

4.) Cleaning supplies used for daily cleanup. (variable product manufacturing overhead)

5.) Wages of workers who build the engines. (variable product direct labor)

6.) Patent lawyers costs. (fixed period research and development)

7.) Accounting fees. (fixed period administrative)

8.) Depreciation on sales persons car. (fixed period selling)

Required:

For each cost, identify it as:

a.) Variable or Fixed

b.) Product or Period

c.) Direct Material, Direct Labour, Manufacturing Overhead, Selling, Administrative or Research and

Development.