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While having a discussion about fasteners, Technician A says that to anneal a metal, it is heated to a specific temperature and then quenched. Technician B says that to anneal a metal, it is heated and allowed to cool slowly. Who is correct?
Overhead
The total cost of running a business that cannot be directly attributed to the production of goods or services, similar to factory overhead but can apply to non-manufacturing costs.
Overhead Allocation Base
A measure or activity, such as direct labor hours or machine hours, used to assign overhead costs to products or services.
Direct Labor Hours
The total hours worked directly on a product or service by employees in the production process.
Overhead Rate
A measure used to allocate overhead costs to produced goods, calculated by dividing total overheads by an allocation base, such as labor hours.
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