Examlex
Which of the following words describes a tentative explanation to a given question?
Direct Labor Hours
The total hours worked by employees directly involved in the manufacturing process.
Allocation Base
An allocation base is a measure or quantity (like direct labor hours or machine hours) that is used to assign costs in an equitable manner.
Overhead Costs
Expenses associated with running a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administrative expenses.
Plantwide Overhead Rate
A single overhead rate applied to all production activities, calculated by dividing the total factory overhead by an allocation base, such as direct labor hours.
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