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Variable Overhead Rate
This rate reflects the cost of variable overhead allocated to each unit of production, based on an activity such as direct labor hours.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process or providing a service.
Fixed Manufacturing Overhead
Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.
Direct Labor-Hours
The total hours of labor directly involved in producing goods or providing services.
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