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An Associative Model Means That

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An associative model means that:


Definitions:

Direct Labor-Hours

The total hours worked by employees that can be directly attributed to the production of a specific good or service.

Manufacturing Overhead

Indirect costs related to manufacturing, not including direct materials or direct labor.

Overapplied Balance

The condition where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Manufacturing Overhead Account

An account that tracks indirect production costs, such as utilities and rent for manufacturing facilities.

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