Cost Behavior Activity Base Direct Materials Product Cost Direct Labor Period Cost Selling Admin Expense Expense Overhead Variable Fixed Value Added Non Value Commerical Aircraft Manufacturer 1 Electronic Guidance System 2 Paving Parking Lot at Corporate Office 3 Metal used for producing airplane body 4 Hourly wages of assembly workers 5 Salary of plant manager 6 Turbo-charged airplane engine 7 Salaries of marketing department 8 Leather seats installed in first class 9 Advertising campaign 10 Salary of chief financial officer 11 Electricity used operating painting 12 Decals for cockpit doors (Immaterial costs) 13 Cost of test pilots 14 Annual maintenance cost of robotic equipment 15 Oil to lubricate factory equipment