💡 Under the variable costing method, only variable manufacturing costs are classified as product costs. These typically include: ࿨ ࿩ ࿪ Direct materials ࿨ ࿩ ࿪ Direct labor ࿨ ࿩ ࿪ Variable manufacturing overhead (e.g., manufacturing supplies) Fixed costs (e.g., factory insurance) and non-manufacturing costs (e.g., shipping) are not considered product costs under variable costing.