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Predetermined Overhead Rate
This rate is calculated before a period begins and is used to apply overhead costs to products based on a selected activity base.
Job-Order Costing
A cost accounting system used to allocate costs to specific jobs or batches, useful for unique or custom orders.
Machine-Hours
A measure of production time, referring to the total hours a machine is operated within a specific period.
Predetermined Overhead Rate
An estimated charge per unit of activity used to allocate manufacturing overhead costs to products.
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