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In a short essay, discuss Porter's focus strategy.
Variable Overhead Rate
This rate reflects the cost of variable overhead allocated to each unit of production, based on an activity such as direct labor hours.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process or providing a service.
Fixed Manufacturing Overhead
Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.
Direct Labor-Hours
The total hours of labor directly involved in producing goods or providing services.
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