Question

In: Accounting

YouWin! manufacturers and sells custom wooden trophies. Each of the company’s two divisions, production and sales,...

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)

Solutions

Expert Solution

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

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