In: Accounting
YouWin! manufacturers and sells custom wooden trophies. Each of the company’s two divisions, production and sales, has a manager who is responsible for all costs in his/her division. The following are selected costs from YouWin!: Wood Brass ornamentation
Engraving materials
Adhesive for trophy production
Salary of sales staff
Wages of machine operators
Wages of factory custodial staff
Production manager’s salary
Rent and insurance of factory building
Rent on headquarters building
Engraving machine
Electricity for factory building
Depreciation of office equipment
Maintenance on engraving machines
For each cost listed fill in the following chart. If a definite distinction cannot be made for any category, indicate why and what additional information would be needed before classification can be made.
Item | product or period | direct or indirect | variable, fixed, or mixed | controllable or uncontrollable (from view of production manger) |
Item | Product or period | Direct or indirect | Variable, fixed, or mixed | Controllable or uncontrollable (from view of production manger) |
Wood | Produt | Direct | Variable | Controllable |
Brass Ornamentation | Produt | Direct | Variable | Controllable |
Engraving materials | Produt | Direct | Variable | Controllable |
Adhesive for trophy production | Produt | Indirect | Variable | Controllable |
Salary of sales staff | Period | Indirect | Fixed | Uncontrollable |
Wages of machine operators | Product | Direct | Variable | Controllable |
Wages of factory custodial staff | Product | Indirect | Variable | Controllable |
Production manager’s salary | Product | Indirect | Fixed | Controllable |
Rent and insurance of factory building | Product | Indirect | Fixed | Uncontrollable |
Rent on headquarters building | Period | Indirect | Fixed | Uncontrollable |
Engraving machine | Product | Indirect | Fixed | Controllable |
Electricity for factory building | Product | Indirect | Mixed | Uncontrollable |
Depreciation of office equipment | Period | Indirect | Fixed | Uncontrollable |
Maintenance on engraving machines | Product | Indirect | Fixed | Uncontrollable |