$3$

Required:

Evaluate each of the following costs and determine whether the cost is $($a$)$ a product cost or a period cost, $($b$)$ variable or fixed in terms of behavior, and $($c$)$ for the product costs only, whether the cost is properly classified as direct material, direct labor, or manufacturing overhead. For each period cost select NA for column $($c$).$

$5$

Consider the following costs that were incurred during the current year:

points

References

$\backslash$table$[[,($a$),($b$),($c$)],[1.$ Tire costs incurred by Ford Motor Company.,Product cost,Variable,Direct material$],[2.$ Sales commissions paid to the sales force of Dell Incorporated.,Period cost,Variable,NA$],[\backslash$table$[[3.$ Wood glue consumed in the manufacture of Rooms To Go furniture$],[($assume that the cost of glue used is an insignificant part of costs of$],[$production$).]],,,],[4.$ Hourly wages of refinery security guards employed by ExxonMobil.,,,$],[5.$ The salary of a financial vice president of Hewlett Packard.,?,,$],[6.$ Advertising costs of Coca$-$Cola.,,,$],[\backslash$table$[[7.$ Straight$-$line depreciation on factory machinery of Boeing$],[$Corporation$.]],,,],[8.$ Wages of assembly$-$line personnel of Whirlpool Corporation.,,,$],[\backslash$table$[[9.$ Delivery costs incurred by Ben & Jerry's for a shipment of their ice$],[$cream to a grocery store.$]],,,],[10.$ Newsprint consumed in printing at The New York Times.,,$(,],[11.$ Plant insurance costs of Texas Instruments.,,,$],[12.$ LED costs incurred in light$-$bulb manufacturing of GE Lighting.,,,$]]$