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Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, used as a basis for applying labor costs to products.
Manufacturing Overhead
All indirect costs associated with manufacturing a product, such as the expenses for equipment maintenance and factory staff salaries, not directly tied to production volume.
Selling Price
The selling price of goods or services to the consumer.
Variable Manufacturing Overhead
Variable manufacturing overhead comprises costs that fluctuate with production volume, such as utilities and materials used in the production process.
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