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The peg-word system relies heavily on the use of
Variable Manufacturing Overhead
Costs that vary with the level of production output and can include expenses such as utilities and materials used in the production process.
Direct Labor-Hours
The total hours worked by employees directly involved in manufacturing a product or delivering a service.
Fixed Manufacturing Overhead
refers to the manufacturing costs that do not vary with the volume of production, such as rent and salaries.
Job-Order Costing System
An accounting method used to allocate costs to specific jobs or orders, typically used in situations where products or services are distinct and made to order.
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