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Machine-hours
A measure of production time, calculated by the number of hours a machine is operated in the production of goods.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.
Direct Labor-hours
The sum of hours logged by workers directly engaged in creating products.
Manufacturing Overhead
Manufacturing overhead encompasses all costs of manufacturing beyond direct materials and direct labor, including expenses like factory equipment depreciation and quality control.
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