The following are items normally found in the cost reports of a sedan car assembly company:

1. Cost of engines shipped from producing plants.
2. Salary of research and development officer in the assembly plant.
3. Annual fire insurance policy for the assembly plant.
4. Wages paid to temporary assembly-line workers hired in periods of high production, workers are paid on an hourly basis.
5. Electricity costs of parts received from suppliers.
6. Annual awards dinner for suppliers.
7. Salary of design engineer who monitors design changes.
8. Communications costs, under a plan basis.

Required: Classify each cost as either direct or indirect with respect to the assembly process and variable or fixed with respect to how the total costs of the plant change as the number of cars assembled changes. Use the format below:

Cost Item	Direct or Indirect	Variable or Fixed
A
B
C
D
E
F
G
H