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Use the following information to answer the questions below.
You live in Atlantic Canada and you are Skyping a friend in Manitoba. You are both complaining about the weather as both regions are being subjected to the same arctic air mass. As you discuss it, however, it becomes clear that she is experiencing a bitter cold that you are not. You realize that you had pretty much the same conversation last summer when it was much hotter in Manitoba than at home.
-This phenomenon is due to
Fixed Overhead
This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.
Variable Overhead
Costs that vary with the level of production output, such as utilities for machines and indirect materials.
Direct Labor Hours
The total hours worked by employees directly involved in the production of goods or services.
Variable
An element, feature, or factor that is liable to vary or change.
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