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-Eugene Debs
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate estimated overhead costs to products based on a predetermined activity base.
Machine-Hours
A measure of the amount of time machines are operated in the production of goods or services, used as a basis for allocating manufacturing costs.
Manufacturing Overhead
The indirect costs related to manufacturing, not including direct labor or materials, such as utility costs and maintenance expenses.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined formula.
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