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Fixed Manufacturing Overhead
Indirect manufacturing costs that do not vary with the level of production, such as salaries of managers and depreciation of factory equipment.
Variable Manufacturing Overhead
Costs associated with manufacturing that vary directly with the levels of production output, such as raw materials and labor.
Overhead Applied
The allocated manufacturing overhead costs to individual products or jobs based on a predetermined rate.
Predetermined Overhead Rate
A rate calculated before the year begins, used to allocate estimated overhead costs to products based on a chosen activity base.
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