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Direct Labor-Hour
A direct labor-hour is a unit of measurement for the amount of work performed by employees who are directly involved in the production of goods or services.
Fixed Manufacturing Overhead
The costs that do not vary with the level of production or sales, such as salaries of managers, rent of the factory, and depreciation of manufacturing equipment.
Predetermined Overhead Rate
A pre-determined rate utilized for attributing manufacturing overhead costs to products or job orders, which is established beforehand based on anticipated expenses and levels of activity.
Variable Manufacturing Overhead
consists of production costs that fluctuate with the level of output, such as utilities or materials used in the maintenance of equipment.
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