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Direct Labor-Hours
The total hours of work directly contributed by laborers to produce goods or services.
Manufacturing Overhead
The indirect costs involved in making a product, excluding direct materials and direct labor expenses.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, computed in advance for each period.
Traditional Costing
An accounting method that allocates overhead costs to products based on a single, volume-based cost driver, such as direct labor hours.
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