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Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead to products.
Fixed Manufacturing Overhead
Costs associated with the production process that do not vary with the level of output, including costs like rent, salaries of permanent staff, and machinery depreciation.
Job-Order Costing System
An accounting method that assigns costs to specific production batches or jobs, used for customized orders.
Predetermined Overhead Rate
An estimated rate used to apply manufacturing overhead to products or job orders, based on a related activity base such as machine hours or direct labor hours.
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