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Long-run equilibrium occurs where:
Direct Labor-Hours
The total hours of work directly involved in manufacturing goods or delivering services, often used as a basis for allocating overhead.
Casting
A process in manufacturing where a liquid material is poured into a mold which contains a hollow cavity of the desired shape and then allowed to solidify.
Assembly
The process of putting together various components or materials to create a finished product.
Predetermined Overhead Rates
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a chosen activity base.
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