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The Total Rate of Return Is Equal to the

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The total rate of return is equal to the


Definitions:

Manufacturing Overhead-Applied

The allocation of estimated manufacturing overhead costs to individual products or job orders based on a predetermined rate.

Direct Labor Hours

The sum of hours spent by workers directly partaking in the creation of goods or provision of services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or activities based on estimated costs and activity levels.

Manufacturing Overhead Cost

Indirect factory-related costs incurred when a product is manufactured, including the costs of utilities, maintenance, and property taxes.

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