Manufacturing Overheads

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August 31, 2024 4 min read Definitions

Direct Labour Hour: Definition and Implications in Cost Accounting

Cost-Accounting Manufacturing Direct Labour Absorption Costing Manufacturing Overheads Time Tracking Cost Allocation

An hour spent working on a product, service, or cost unit produced by an organization by those operators whose time can be directly traced to the production. The direct labour hour is often used in absorption costing as a basis for absorbing manufacturing overheads to the cost unit.

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