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Direct Materials
The raw materials that are directly traceable to the manufacturing of a product and included in the cost of the product.
Direct Labor-Hours
The number of labor hours expended directly on the production floor by employees actively engaged in manufacturing processes.
Variable Overhead
Variable overhead are those operating costs that vary with levels of output or activity, including utilities, supplies, and certain labor costs.
Direct Material
Raw materials that can be directly traced to the manufacturing of a specific product and are a significant portion of the production cost.
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