E 11. The cost categories in this list are typical of many manufacturing operations:

Direct materials: Direct labor Depreciation–machinery Sheet steel Engineering labor Supervisory salaries Iron castings Indirect labor Electrical power Assembly parts: Operating supplies Insurance and taxes–plant Part 24RE6 Small tools President’s salary Part 15RF8 Depreciation–plant Employee benefits Identify each cost as direct or indirect, assuming that it was incurred in (1) a traditional manufacturing setting and (2) a JIT environment. State the reasons for changes in classification.