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Expected Activity
The anticipated level of operations based on projections, such as hours worked, units produced, or services rendered.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on their usage of the activities.
Manufacturing Overhead
All manufacturing costs other than direct materials and direct labor, including costs related to running a factory such as utilities, depreciation, and maintenance.
Direct Labour-Hours
The total hours worked directly on the production of goods or services.
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