E$2-2($cost classification$)$

Below are listed various costs found in organizations. Classify each cost in terms of

$($a$)$ its cost behavior as volume changes within the relevant range $($variable or fixed$).$

$($b$)$ whether is it a period cost $($period expense$),$ or a product cost.

If a cost is a product cost, classify it further whether it is a direct material $($DM$)$ cost$,$ a direct

labor $($DL$)$ cost$,$ or a manufacturing overhead $($OH$)$ cost$.$

Variable Product

Or fixed or period

$1.$ Steering wheels installed in BMW automobiles. $.....................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$2.$ Depreciation of factory lunchroom facilities........................... $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$3.$ Commissions paid to sales persons $.....................................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$4.$ Salary of a supervisor overseeing productions of circuit boards...... $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$5.$ Insurance on IBM$$s corporate headquarters $............................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$6.$ Insurance on a factory producing contact lenses $.......................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$7.$ Freight to ship processed sweet corn to a retailer $......................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$8.$ Raw sweet corn processed and canned $..................................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$9.$ Hamburger buns in a McDonald$$s outlet $................................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$10.$ Advertising by McDonald$$s $..............................................\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$11.$ Compensation $($wages$)$ paid to production$-$line works at Ford $.......\_\_\_\_\_\_\_\_\_\_\_\_\_$

$12.$ Compensation $($wages$)$ paid maintenance works at a Ford plant $.......\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$13.$ Compensation $($wages$)$ paid purchasing agents at a Ford plant $........\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$14.$ Compensation paid to sales representatives of a Ford plant $.........\_\_\_\_\_\_\_\_\_\_\_\_\_$

$15.$ Motor oil added to a new Ford car before driven off production line $\_\_\_\_\_\_\_\_\_\_\_\_\_$

$16.$ Motor oil added to a maintenance vehicle at a Ford plant $............\_\_\_\_\_\_\_\_\_\_\_\_\_$

$17.$ Motor oil added to an auto used by a sales representative of Ford $...\_\_\_\_\_\_\_\_\_\_\_\_\_$