Chapter 19, Problem 4E

To determine

Manufacturing Overhead: Manufacturing overhead can be defined as costs which are directly related with the production process of finished goods. It includes depreciation, indirect factory labor, salary of factory managers and various taxes.

Product Costs: The cost which is associated in making or manufacturing a product is called as product cost. It is shown in income statement of company.

Period Cost: The cost which is incurred at the time of selling, handling and governing a product is called as period cost. It includes shipping cost, selling expenses and office expenses. It is shown in income statement.

To determine: (a) Manufacturing overhead, (b) product costs and (c) period costs.