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If the Minimum Wage Is a Binding Price Floor

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If the minimum wage is a binding price floor:


Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, typically used in manufacturing to determine production costs or capacity.

Predetermined Overhead Rate

A rate determined prior to the start of a period, designed for assigning anticipated overhead expenses to products or job orders, utilizing a selected activity basis for calculation.

Manufacturing Overhead

Costs in the manufacturing process that are not direct labor or materials.

Direct Labor-Hours

A measure of the labor directly involved in manufacturing a product, expressed in hours.

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