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Direct Labor-Hours
The sum of hours contributed by workers directly participating in the creation of a product or the execution of a service.
Variable Manufacturing Overhead
Costs in manufacturing that vary directly with the level of production output, such as utilities and raw materials.
Fixed Manufacturing Overhead
Costs associated with manufacturing that remain constant regardless of the level of production, such as rent and salaries of managerial staff.
Machine-Hours
A measurement unit used in accounting and manufacturing to allocate costs to products based on the number of hours machines are operated during the production process.
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