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Manufacturing overhead has three components: indirect materials, other overhead and indirect:

ALosses
BLabour
CLeases
DLevies
Answer & Solution
Correct answer: B. Labour
1. Indirect materials cover untraceable physical inputs. 2. The matching category covers untraceable human effort. 3. The third component is indirect labour. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
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