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Direct Labor-Hours
Direct Labor-Hours refer to the total hours worked by employees who are directly involved in the production process, affecting the cost of goods.
Predetermined Overhead Rate
A rate used in costing to allocate estimated overhead costs to products or job orders based on a predetermined expense and activity level.
Job-Order Costing System
A costing method that assigns costs to specific jobs or batches, used when products or services are distinctly different.
Finishing Department
The section of a manufacturing plant where products are completed, undergoing final processes such as painting, polishing, or packaging.
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