EX 16-3 Classifying costs as factory overhead OBJ. 2 Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? a. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i Vice president of human resources's salary Property taxes on the Detriot, Michigan, headquarters building EX 16-4 Classifying costs as product or period costs OBJ. 2 For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost a. Research and development costs b. Depreciation on sewing machines c. Fabric used during production d. Depreciation on office equipment e. Advertising expenses f. Repairs and maintenance costs for sewing machines R. Salary of production quality control supervisor h. Utility costs for office building i Sales commissions Salaries of distribution center personnel. k. Wages of sewing machine operators L Factory janitorial supplies m. Chief financial officer's salary n. Travel costs of media relations employees a. Factory supervisors salaries p. Oil used to lubricate sewing machines. q. Property taxes on factory building and equipment