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Direct Materials
Raw materials that are directly traceable and allocable to a finished product in the manufacturing process.
Direct Labor-Hours
A unit of measure for the time workers spend producing goods or services, indicative of the labor cost attributed per hour.
Variable Overhead
Costs that vary with production volume, such as utilities or materials, as opposed to fixed overhead costs.
Direct Materials
Raw materials that can be directly attributed to the production process of specific goods or services.
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