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Roxanne and Eileen live in an apartment building with a laundry room in the basement.Roxanne does her laundry at home,spending $4 and 5 hours per week.Eileen sends her laundry out,spending $20 and 15 minutes per week transporting the laundry.On the basis of the information given,which one of the following must be true?
Predetermined Overhead
An estimated rate used to assign overhead costs to products or services based on a planned amount of overhead and a planned allocation base.
Direct Labor
Workers who are directly involved in the manufacturing of goods or provision of services, whose labor costs are directly attributed to the product or service.
Raw Materials
Fundamental substances utilized as the starting point in the manufacturing process to create products.
Predetermined Overhead
An estimated amount of overhead cost assigned to each unit of production in advance of the actual production.