Aircraft Assemblies, Inc, manufactures clamps used in the overhead bin latches of several leading airplane models. Scott Sykes, President of Aircraft Assemblies, Inc, has gathered the following cost information from the companys accounting records for the latest month of operations

a. Classify each of the following costs as a product or period cost? Also indicate whether the cost is fixed or variable with respect to changes in the amount of output produced or sold.

b. Calculate the total period costs, total product costs for the month?

c. Calculate the amount of manufacturing overhead incurred for the month?

Advertising $20,000 Fire insurance premium for the factory building $5,000 Sales office utilities $ 500 Air filters for the buffing machines used to produce the clamps $ 1,500 Aluminum used to produce the clamps $30,000 Rent on the factory building $ 8,000 Freight to ship the clamps to customers $ 2,500 Sales department executives' salaries $500 Production supervisors' salaries $18,000 Assembly line workers' wages $48,000 The cost of life insurance policies for top corporate executives S500