Examlex
The two types of cells are:
Direct Materials
Raw materials that are directly traced and are integral to the production of finished goods.
Direct Labor
The labor costs directly attributable to the production of goods or services.
Overhead Rate
The ratio used to allocate overhead costs to produced units, calculated by dividing total overheads by an allocation base like labor hours.
Work in Process Inventory
Inventory that includes all materials and labor currently in the process of being manufactured but not yet completed.
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