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Figure 2
-Refer to Figure 2. This is an example of a
Fixed Manufacturing Overhead
Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.
Direct Labor-Hours
The total hours of labor directly involved in producing goods or providing services.
Direct Labor Rate
The cost per hour for labor directly involved in the production of goods or services.
Production Budget
A budget outlining the number of units that must be produced within a period to meet both sales and inventory demands.
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