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An auditor plans to analyze customer satisfaction, including. (1) customer complaints recorded by the customer service department during the last three months; (2) merchandise returned in the last three months; and (3) responses to a survey of customers who made purchases in the last three months. Which of the following statements regarding this audit approach is correct?
Predetermined Overhead Rate
A calculated rate that estimates the manufacturing overhead cost per unit of production, based on expected or historical data.
Machine-Hours
A measure of the amount of time a machine is operated during a given period, commonly used in manufacturing to allocate costs or to measure productivity.
Manufacturing Overhead Costs
All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for non-direct labor.
Direct Labor-Hours
A measure of the total hours worked directly on a specific job or task, excluding indirect labor involved in general factory supervision or maintenance.
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