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The technique of free association is designed to
Direct Labor Cost
The cost of labor directly involved in the production process, excluding indirect expenses like maintenance.
Predetermined Overhead Rate
This rate is used to allocate overhead costs to products or services based on a specific formula, often involving direct labor hours or direct material costs, aiding in the budgeting and costing process.
Direct Labor Costs
The wages and related benefits paid to employees who are directly involved in the production of goods or the provision of services.
Factory Overhead Applied
Costs associated with the production process that are not directly tied to a specific product, such as depreciation or utilities, allocated to products based on a systematic approach.
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