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The rational model acknowledges cultural differences.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined activity base.
Direct Labor Cost
The wages and related expenses for employees who are directly involved in the production of goods or services.
Factory Labor Costs
Expenses associated with employing labor in a manufacturing setting, including wages, salaries, and benefits.
Manufacturing Overhead
All manufacturing costs other than direct labor and direct materials that are involved in the creation of a product.
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