Examlex
All of the following are true about conformity EXCEPT:
Predetermined Overhead Rate
An estimated overhead cost rate used to allocate overhead costs to products or job orders based on activity levels.
Factory Overhead
All indirect costs associated with the production process, such as utilities, maintenance, and salaries of production supervisors, which are not directly traceable to specific units.
Direct Labor Hours
The total hours worked by employees directly involved in manufacturing products or delivering services.
Direct Materials
Raw materials directly used in the manufacturing of a product, easily traceable to the finished good.
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