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Consider the following reaction coordinate diagram. This reaction is endergonic.
Direct Labor-Hours
The total hours of labor directly involved in producing goods or services, which is often used as a base for allocating overhead costs.
Variable Manufacturing Overhead
Costs that vary with the level of manufacturing activity, including items like indirect materials and utilities.
Fixed Manufacturing Overhead
These are the manufacturing costs that do not vary with the volume of production, including costs like rent, insurance, and salaries for certain employees.
Machine-Hours
The total hours that machinery is operational and in use on the production floor.
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