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Categorise the below manufacturing overhead cost items as variable or fixed costs. Assume the cost object is a copy of training material. Provide justification for
Categorise the below manufacturing overhead cost items as variable or fixed costs. Assume the cost object is a copy of training material. Provide justification for your categorisation.
- Depreciation on machinery calculated using straight-line method
- Indirect material costs determined by direct material usage
- Utility costs determined by machine hours
- Rent on factory building determined by a 5-year tenancy agreement
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