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Manufacturing Overhead
Refers to the indirect factory-related costs incurred when producing a product, which may include the cost of materials, labor, and utility expenses that are not directly tied to the production of goods.
Predetermined Overhead Rate
A rate used to allocate indirect costs to products or services, based on estimated overhead costs and an allocation base.
Direct Labor-hours
The sum of time spent by employees directly involved in the creation of a product, often used to allocate manufacturing costs.
Manufacturing Overhead
All indirect costs associated with the production process, including utilities, maintenance, and salaries of non-direct labor.
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