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The 1987 study by Bowen,Leamer and Sveikauskas
Manufacturing Overhead Applied
The amount of manufacturing overhead costs allocated to individual products or product lines based on a predetermined overhead rate.
Direct Materials
Raw materials that are directly used in the manufacturing of a product and can be easily traced back to the finished goods.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined activity base.
Direct Labor Cost
The wages and related expenses for employees who are directly involved in the production of goods or services.
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