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Job-Order Costing System
An accounting system that accumulates costs per job rather than per time period, used in industries where goods are custom-made.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity.
Variable Manufacturing Overhead
Costs that fluctuate with production volume, such as utilities and materials used in the production process.
Direct Labor-Hours
The total number of hours worked by employees who are directly involved in the manufacturing process.
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