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In a union shop
Machine-Hours
A measure of production activity that quantifies the total hours machines are operated in the manufacturing process.
Direct Labor Cost
The wages or salaries directly attributable to the production of goods or services, excluding indirect costs such as supervision and maintenance.
Overhead Applied
Refers to the allocation of indirect costs to specific cost objects, such as products or services, based on a predetermined rate or basis.
Direct Labor-Hours
The total hours of labor directly involved in the manufacturing process, used as a basis for allocating manufacturing overhead to products.
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