Reference no: EM13341070

Consider the following costs that were incurred during the current year:

1.Tire costs incurred byFord Motor Company.
2.Sales commissions paid to the sales force ofDell Inc.
3.Wood glue consumed in the manufacture ofThomasville furniture.
4.Hourly wages of refinery security guards employed byExxonMobil Corporation.
5.The salary of a financial vice president ofHewlett Packard.
6.Advertising costs ofCoca-Cola.
7.Straight-line depreciation on factory machinery ofBoeing Corporation.
8.Wages of assembly-line personnel ofWhirlpool Corporation.
9.Delivery costs on customer shipments ofBen & Jerry's ice cream.
10.Newsprint consumed in printingThe New York Times.
11.Plant insurance costs ofTexas Instruments.
12.Glass costs incurred in light-bulb manufacturing ofGeneral Electric.

Required:Evaluate each of the preceding and determine whether the cost is (a) a product cost or a period cost, (b) variable or fixed in terms of behavior, and (c) for the product costs only, whether the cost is properly classified as direct material, direct labor, or manufacturing overhead. Item 1 is done as an example:

Tire costs: Product cost, variable, direct material