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Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on an estimate of total overhead costs and an allocation base.
Manufacturing Departments
Specific sections within a manufacturing facility where distinct stages of the production process are carried out, such as assembly or painting.
Machine-Hours
A measure of production output or work measurement based on the number of hours machines are operated.
Job-Order Costing System
A cost accounting system in which costs are assigned to specific jobs or batches, used in manufacturing and services.
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