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Which of the following is the best rule to follow in shredding information?
Variable Overhead
Costs of production that vary directly with the volume of output, such as utilities and labor efficiency.
Direct Labor-Hours
The total hours worked by employees directly involved in manufacturing products, used as a basis for assigning labor costs to those products.
Manufacturing Overhead
All indirect costs associated with manufacturing, including costs for indirect labor, materials, and factory operations, that are not directly traceable to specific products.
Direct Materials
Direct materials refer to the raw materials that become an integral part of the finished product and can be easily traced back to it.
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