The Fremont, California, plant of New United Motor Manufacturing, Inc. (NUMMI), a joint venture of General Motors

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The Fremont, California, 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.
Required
Classify each of the following cost items as:
a. Direct or indirect (D or I) costs with respect to the total number of cars of each type assembled (Corolla or Geo Prism).
b. Variable or fixed (V or F) costs with respect to how the total costs of the plant change as the total number of cars of each type assembled changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of cars of each type assembled.)
You will have two answers (D or I; V or F) for each of the following items:
The Fremont, California, plant of New United Motor Manufacturing, Inc.
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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0131495388

12th edition

Authors: Charles T. Horngren, Srikant M. Datar, George Foster

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