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Variable Manufacturing Overhead
Costs of manufacturing that fluctuate with the level of production, such as utilities or commissions, excluding direct materials and direct labor.
Fixed Manufacturing Overhead
Indirect production costs that remain constant, regardless of the level of production output, such as salaries or rent.
Direct Labor-Hours
An accounting metric denoting the hours worked by employees directly involved in manufacturing goods or providing services, crucial for cost allocation and pricing.
Unused Capacity
Available but not currently utilized production or service capacity within a business.
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