1. Classify each of the following cost in terms of

1. its cost behavior as volume changes (fixed or variable)

(b) Whether it is a period cost that should be expensed immediately or a product cost that becomes part

of the cost of inventory.

(c) If a cost is a product cost, classify it further whether it is a direct material, direct labor, or a

manufacturing overhead cost.

1. 1. _____ _____ ______ Straight-line depreciation of automobiles used by AT&T sales Personnel.

   2. Wages paid to a production line worker at AT&T plant.

   3. Gasoline added to a maintenance vehicle at a GM plant

   4. Insurance on Amocos corporate headquarters.

   5. Shipping raw crude oil from oil field to an Amoco refinery.