Direct indirect fixed and variable casts, Ceramica Company manufactures three kinds of hand- painted ceramic figurines in a two-step process. The first step is automated; in the Baking Department a machine presses the clay figurines into molds and bakes them. In the Painting Department the baked figurines are carefully removed from their molds and hand painted. After they dry, the figurines are packed and shipped to customers. Ceramica’s two departments, Baking and Painting, are in a single factory building. Packaging takes place in the Painting Department.

1. Costs involved in the process are listed below. For each cost below, indicate whether it is a direct variable, direct fixed, indirect variable or indirect fixed cost assuming “units of production of each kind of figurine” is the cost object

Costs:

Clay

Paint

Packaging materials

Depreciation on machinery and molds

Rent on factory

Insurance on factory

Factory utilities

Painters

Painting Department manager

Baking Department manager

Materials handlers

Custodian in factory

Night guard in factory

Machinist (running the baking machine)

Machine maintenance personnel

Maintenance supplies for factory Cleaning supplies for factory

2. If the cost object were “Baking Department” rather than output which costs above would now be direct instead of indirect costs?