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Overhead Rate
A calculation used to allocate overhead costs to produced goods or services, often based on direct labor hours or machine hours.
Direct Labor Cost
The wages and related expenses for workers who are directly involved in the production of goods or services.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated overhead costs and activity levels.
Direct Labor Costs
Expenses associated with the work directly performed on goods being produced, including wages paid to workers actually manufacturing a product.
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