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Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to products or services.
Manufacturing Cost
All expenses directly related to the production of goods, including raw materials, labor, and factory overhead.
Machine-Hours
A measure of production time, indicating the total hours that machines are operating in the manufacturing process.
Manufacturing Overhead
The indirect factory-related costs that are incurred when producing a product, including costs related to management, utilities, and equipment depreciation.
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