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Direct Materials
Raw materials that are directly traceable to the production of a specific finished good.
Direct Labor Rate
The cost per hour for labor directly involved in producing goods or delivering services, typically used in calculating the total cost of production or service provision.
Machine Hours
A measure of production time, representing the total hours a machine is operated in the production of goods.
Factory Overhead Rate
The ratio of total indirect manufacturing costs to some base, commonly used to allocate overhead costs to products.
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