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Graph the equation.
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Fixed Overhead
Regular, predictable costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.
Variable Overhead
Costs that vary directly with the level of production or business activity.
Direct Labor
The workforce directly involved in manufacturing products or delivering services, whose costs are directly attributable to the production.
Direct Materials
Materials that can be directly attributed to the production of specific goods or services and are an essential component of finished products.
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