Examlex
The delivery lead time was highly variable as was the quality of the product being shipped. These two factors combined to contribute to the waste of:
Activity Rate
The predetermined overhead rate used to allocate overhead costs based on specific activities or cost drivers.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on the activities that consume resources.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process or providing a service.
Production Orders
Instructions or commands to start the manufacture of a certain quantity of a product within a specified timeframe.
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