Examlex
One of the important aspects about the dual-rate method is that it allows managers to see how variable and fixed costs behave differently.
Direct Labor-Hours
The total time worked by employees who are directly involved in the manufacturing process of a product.
Predetermined Overhead Rate
A rate used to allocate estimated overhead costs to products or services, based on a preselected activity base.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.
Machine-Hours
The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.
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