Examlex
After their home in California is damaged during an earthquake, a couple looks into the federal loan programs to help them rebuild. Their behavior is an example of ________________.
Manufacturing Overhead Rate
The ratio used to allocate manufacturing overhead costs to products based on a cost driver, such as labor hours or machine hours.
Machine Hour
A unit of measure representing the operation of a machine for one hour, used in allocating manufacturing costs based on machine usage.
Plantwide Overhead Rate
A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the product line.
Cost Driver
A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs.
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