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Indirect labor is included in factory overhead.
Departmental Overhead Rate
The allocation of indirect costs to specific departments based on relevant activity bases, such as labor hours or machine hours, to more accurately assign costs.
Direct Labor Hours
The total hours worked by employees directly involved in manufacturing a product or providing a service.
Baking Department
A division within a business that specializes in the preparation and production of baked goods.
Overhead Costs
Indirect costs associated with operating a business, which can include rent, utilities, and administrative expenses.
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