Question

8. Classify each of the following costs as a period cost or a product cost. If...

8. Classify each of the following costs as a period cost or a product cost. If you classify the cost as a product​ cost, further classify it as direct material​ (DM), direct labor​ (DL), or manufacturing overhead​ (MOH). ​(If the cost is a period​ cost, leave the classification box​ empty; do not select a​ label.)

Period cost If product cost, or product cost DM, DL or MOH

a1. Property taxes—30% of building is used for sales, marketing, and administrative offices

a2. Property taxes—70% of building is used for manufacturing

b. Wages and benefits paid to assembly-line workers in the manufacturing plant

c. Depreciation on automated production equipment

d. Salaries paid to quality control inspectors in the plant

e. Repairs and maintenance on factory equipment

f. Standard packaging materials used to package individual units of product for sale (for example, cereal boxes in which cereal is packaged)

g. Lease payment on administrative headquarters h. Telecommunications costs for the customer service call center

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