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Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:The actual direct materials purchase price (AP) per kilogram in July (to two decimal places) was:
Direct Labor Budget
A financial plan that forecasts the costs associated with the labor directly involved in the production of goods or services.
Direct Labor-Hour
A metric indicating the total hours worked by employees directly involved in the production process, often used for costing purposes.
Labor Rate
The amount paid to an employee per unit of time, usually per hour or year.
Direct Materials Purchase Budget
A financial plan that estimates the quantities and costs of direct materials to be purchased to meet production requirements.
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