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Variable Overhead
Costs that fluctuate with the level of production activity, such as utilities or raw materials.
Fixed Overhead
Overheads that stay the same no matter the quantity produced or sold, encompassing rent, payroll, and insurance costs.
Fixed Manufacturing Overhead
Ongoing, consistent expenses associated with manufacturing operations, such as rent, salaries, and utilities, regardless of production levels.
Denominator Level
The activity level chosen to compute the predetermined overhead rate, reflecting expected or actual activity.
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