Knowledge Check 01 Decide how each cost is treated on an income statement prepared using the variable costing approach. Using the dropdown boxes indicate whether each cost item is treated as a period cost or product cost, 1. Direct labor 2. Fixed manufacturing overhead 3. Variable manufacturing overhead 4. Fixed selling and administrative expenses 5. Variable selling and administrative expenses Knowledge Check 01 Decide how each cost is treated on an income statement prepared using the variable costing approach. Using the dropdown boxes indicate whether each cost item is treated as a period cost or product cost, 1. Direct labor 2. Fixed manufacturing overhead 3. Variable manufacturing overhead 4. Fixed selling and administrative expenses 5. Variable selling and administrative expenses