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It is assumed in economics that people make decisions based upon
Direct Labor Rate
The cost per hour for direct labor incurred in the production of goods.
Production Budget
An estimation of the total cost and resources needed for a company to produce a set amount of goods in a given period.
Variable Overhead Rate
Variable overhead rate is the cost of variable overhead (expenses that change with the level of production) allocated per unit of production activity, such as labor-hours or machine-hours.
Direct Labor-Hours
The total hours worked by employees who are directly involved in the manufacturing process or production of goods.
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