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Factory Overhead Rate
Factory overhead rate is the method of allocating indirect manufacturing costs, like utilities and rent, to individual units of production based on a specific allocation base.
Assembly Department
a division within a manufacturing plant where components are put together to create a final product.
Direct Labor Hour
The amount of time employees directly involved in manufacturing spend on producing a specific unit of output.
Factory Overhead Rates
Calculated rates used to allocate a factory's indirect costs to products being produced, aiding in determining total production costs.
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