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Factory Overhead Rates
A measure used to allocate the costs of operating a factory, which cannot be directly tied to specific units produced, over the units produced.
Direct Labor Hours
The total hours worked by employees who are directly involved in producing goods or providing services.
Machine Hours
A measure of the amount of time a machine is operated, used in allocating manufacturing costs to units of product.
Finished Goods
Items that are finished being made but have not been purchased by consumers yet.
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