Classification of costs, manufacturing sector. The Fremont, California plant of New United Motor M ifacturing Inc. f NfUMMI), a joint venture of General Motors and Toyota, assembles two tyj; ofcars(Corol nd Geo Prisms). Separate assembly lines are used for each type of car.

Required Classify each of the follow ing cost items as

a. Direct or indirect (D or I) costs with res Prism)

b. Variable or fixed (V or F) costs with respect to . the total costs of the plant change as the number of cars assembled changes. (If in doubt. s« t on the basis of whether the tota! costs will change substantially if a large number of cars a assembled.)
You will have two answers (D or I; V or F) for each c he following items:
Cost Item D or I V or F A. Cost of tires used on Geo Prisms B. Salary of public relations manager for NUMMI plant C. Annual awards dinner for Corolla suppliers D. Salary of engineer who monitors design changes on Geo Prism E. Freight costs of Corolla engines shipped from Toyota City, Japan, to Fremont, California F. Electricity costs for NUMMI plant (single bill covers entire plant)
G. Wages paid to temporary assembly-line workers hired in periods of high production (paid on hourly basis)
H. Annual fire insurance policy cost for NUMMI plant