Jack performs maintenance on the manufacturing machinery, and Charlie performs maintenance on the office computers. Would their salaries be classified differently? A : Yes, Jack’s salary would be classified as direct labor, whereas Charlie’s salary would be classified as indirect labor. B : Yes, Jack’s salary would be classified as a product cost, whereas Charlie’s salary would be classified as a period cost. C : No, both salaries would be classified as indirect labor. D : No, both salaries would be classified as a product cost.

In determining the product cost, Jack's salary which forms part of the manufacturing overhead will be included in the total manufacturing costs whereas Charlie's salary will be regarded as a period cost. This makes option B the correct choice. The maintenance costs on manufacturing machinery and office computers are classified differently in a manufacturing setting because Jack's maintenance affects manufacturing indirectly while Charlie's maintenance affects the office administration directly.