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Jim Randolph is a very good friend of the shift supervisor and can frequently get the supervisor to overlook things he would otherwise reprimand Jim's group for doing.Because Jim can do this for the group,the group does not expect him to take part in the daily equipment cleanup.This is an example of
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.
Fixed Overhead
Indirect costs of production that remain relatively constant regardless of the level of output, such as rent, salaries, and insurance.
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