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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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