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Use the figure below to answer the following questions. Figure 9.3.3
-Consider an initial budget line labelled RS in Figure 9.3.3.The budget line becomes RT with
Direct Materials
The raw materials that are directly used in the manufacturing of a product, which can be directly traced to the product itself.
Direct Labour
The wages and related benefits for workers who are directly involved in the manufacturing or production of goods.
Variable Manufacturing Overhead
Variable manufacturing overhead includes costs that fluctuate with production volume, such as utilities and materials used in the production process that are not directly tied to specific units produced.
Fixed Manufacturing Overhead
The consistent, non-variable costs associated with manufacturing, regardless of the production volume.
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