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Which equation is correct?
Indirect Labor
Labor costs not directly associated with the manufacturing of a product, such as maintenance and administrative staff expenses.
Direct Materials
Materials in their unprocessed state that are directly linked to the manufacturing of specific products or services.
Direct Labor Costs
The expenses of paying workers who are directly involved in the production of goods or services.
Factory Overhead
All indirect costs associated with the manufacturing process, including utilities, depreciation, and wages for support staff that are not directly involved in production.
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