Question

What type of variable is the wages paid to temporary assembly-line workers hired in periods of high Recliner production (paid on an hourly basis)?

1) Direct Variable
2) Indirect Variable
3) Direct Fixed
4) Indirect Fixed

Answer 1

The wages paid to temporary assembly-line workers hired in periods of high Recliner production are considered Direct Variable variables.

Step-by-step explanation:

The wages paid to temporary assembly-line workers hired in periods of high Recliner production, which are paid on an hourly basis, would be classified as Direct Variable variables. Direct Variable refers to costs that vary with production or sales levels. In this case, as the production level increases, the wages paid to the temporary assembly-line workers also increase.