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Machine-hours
A measure of production time, indicating the number of hours that machines are operational in the manufacturing process.
Direct Labor-hours
The total time worked by employees that can be directly associated with the production of specific goods or services.
Manufacturing Overhead
Manufacturing overhead encompasses all indirect costs associated with the manufacturing process, including utilities, maintenance, and equipment depreciation.
Fixed Manufacturing Overhead
Overhead costs in manufacturing that remain constant regardless of the volume of production, such as salaries of supervisors and factory rent.
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