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Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to individual products or job orders, calculated before the production period based on estimated costs and activity levels.
Labor Rate Variance
Labor rate variance measures the difference between the actual wages paid to workers and the expected wages, indicating discrepancies in labor cost management.
Direct Labor
Labor costs directly attributed to the production of goods or services, such as wages of workers on the assembly line.
Fixed Manufacturing Overhead
Costs associated with manufacturing that do not change with the level of production, such as salaries of supervisors and factory rent.
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