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Factory Depreciation
The reduction in value of manufacturing equipment and facilities over time, considered an indirect manufacturing cost.
Overapplied Overhead
A situation in which the overhead allocated to products exceeds the actual overhead costs incurred.
Actual Direct Labour Hours
The real number of labor hours spent on a production process as opposed to planned or estimated hours.
Manufacturing Overhead Cost
Indirect costs related to manufacturing that are not directly tied to a specific product, such as factory maintenance and utilities.
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