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Variable Manufacturing Overhead
Variable manufacturing overhead includes expenses that fluctuate with production levels, such as materials and utility costs directly associated with manufacturing.
Fixed Manufacturing Overhead
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance for manufacturing facilities.
Direct Labor-Hours
The collective number of hours that employees, who are directly engaged in the production of a good or the provision of a service, have worked.
Variable Manufacturing Overhead
Costs that vary with manufacturing output, including items like indirect materials and utilities required for production processes.
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