Sperry-New Holland manufactures farm machinery. During 20X1, it incurred a variety of costs, several of which appear on the following list. Nature of Incurred Cost a. Comprehensive liability insurance premium on corporate headquarters b. Depreciation on production equipment c. Electricity consumed d. Property and casualty insurance premiums e. Raw material used f. Royalties paid to the designer of one of the company's products g. Salaries of corporate legal counsel h. Travel expenses for sales force. L. Wages of plant maintenance personnel J. Wages of production workers k. Workers' compensation insurance Required: Classify each listed cost as a product or period cost, or both. For costs that are probably allocable to both classifications, suggest a reasonable allocation approach. (If a cost is both product or period, then "Both period and product" should be selected.) Nature of Incurred Cost a. Comprehensive liability insurance premium on corporate headquarters b. Depreciation on production equipment c. Electricity consumed d. Property and casualty insurance premiums e. Raw material used f. Royalties paid to the designer of one of the company's products g Salaries of corporate legal counsel h. Travel expenses for sales force LWages of plant maintenance personnel Wages of production workers Cost Classification