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In general,the seller's team should be the same size as the buyer's team.
Direct Labor-Hours
The overall hours spent by staff directly participating in creating goods.
Manufacturing Overhead
All indirect costs associated with manufacturing, such as utilities, rent, depreciation, and salaries of indirect labor, which are not directly traceable to specific products.
Predetermined Overhead Rate
An estimated charge used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined activity base.
Machine-Hours
The total hours that machinery is operational and actively being used in the production process, often used as a basis for allocating manufacturing overhead.
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