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Direct Materials
Raw materials that can be directly associated with the production of specific goods or services and are a major component of total manufacturing costs.
Direct Labor-Hours
A measure of the time workers spend directly manufacturing a product, used in calculating labor costs and efficiency.
Variable Overhead
Costs of indirect production activities that fluctuate with the level of production output, such as electricity for machinery or materials handling costs.
Direct Materials
Direct materials are raw materials that are directly used in the manufacturing process of a product and can be easily traced to the product itself.
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