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Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual units of output on the basis of some common activity, such as machine-hours or labor hours.
Labor Cost
The total expense incurred by a company for the compensation of its employees.
Machine-Hours
A measure of the amount of time a machine is operated, used in cost accounting to allocate machine-related expenses to products.
Multiple Overhead Rate
A costing method that uses more than one overhead rate to allocate indirect costs to products more accurately.
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