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Direct Labor-Hour
A measure of the work time spent by employees who are directly involved in the production process.
Manufacturing Overhead
The indirect factory-related costs that are incurred when a product is manufactured.
Forming Department
A section within a manufacturing process where raw materials are shaped or formed into parts before being assembled into final products.
Manufacturing Overhead
All indirect costs associated with the production process, such as utilities, maintenance, and factory supervisor salaries, not directly tied to the production of goods.
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