Is Wage payments a fixed cost or Variable cost?

Wages are generally based on an hourly rate, therefore they are generally a variable cost. Think for instance at a manufacturing business and the production of a specific product. A calculation can be made on the labour cost needed (budget), which will later be compared to actual cost incurred. These are generally based on a number of labour hours needed/used multiplied by an hourly rate.

Salaries are generally considered a fixed cost.