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Factor.
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Direct Labor-hours
Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process, used as a measure for allocating labor costs to products.
Predetermined Overhead Rate
The rate estimated at the beginning of a period to allocate overhead to products or job orders, calculated based on expected overhead costs and an allocation base.
Machine-hours
A measure of production activity that quantifies the total hours that machinery is in operation during a given period.
Manufacturing Overhead
All indirect costs related to the manufacturing process, including materials, labor, and expenses not directly tied to the production of goods.
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