The Fremont, CA plant of New United Motor Manufacturing Inc (NUMMI), a joint venture

of General Motors and Toyota, assembles two types of cars (Corollas and Geo Prisms).

Separate assembly lines are used for each type of car.

Classify each of the following cost

items as direct or indirect (wrt type of car assembled) and fixed or variable (wrt cars

assembled).

D or I

V or F

View answer

Cost of tires on Geo Prism

Salary of public relations

manager for NUMMI plant

Annual awards dinner at Hilton

Hotel for Corolla suppliers

Salary of Prism design engineer

Freight costs of Corolla engine

Electricity cost of NUMMI plant

Wages paid to assembly-line

temps in times of high production

Annual plant fire ins. policy