1B Cost Classification

The following are costs of Bettys Burger Truck a food truck operating in downtown Seattle. 1.) Cooks wages. (variable product direct labor)

2.) Propane costs to heat the grill. (variable product manufacturing overhead)

3.) Gasoline costs to travel to events. (variable product manufacturing overhead)

4.) Painting company logo on the side of the truck. (fixed period administrative)

5.) Business license. (fixed period administrative)

6.) Depreciation on the cooking equipment. (fixed product manufacturing overhead)

7.) Costs of improving the recipe for new bison burger. (fixed period research and development)

8.) Burger meat. (variable product direct material)

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.