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Which of these happened first?
Departmental Overhead Rates
The allocation of indirect costs to specific departments based on a predetermined formula, used to accurately assign costs to products based on the departments they pass through.
Direct Labor Hours
The total hours of labor directly involved in the manufacturing or production of goods, often used as a basis for allocating manufacturing overhead.
Machine Hours
A measure of production time, representing the number of hours a machine is operated in the manufacturing process.
Manufacturing Overhead Costs
Manufacturing overhead costs are indirect expenses related to the production process, such as utilities, maintenance, and factory management salaries, that cannot be directly tied to a specific product.
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