Examlex
Briefly explain the ABC model and provide an example of each model element.
Machine Hours
A measure of production time or operation, referring to the total hours a machine is used or operates within a given period.
Overapplied Amount
This term refers to a situation where the allocated or applied costs in cost accounting exceed the actual costs incurred.
Factory Overhead Rate
A cost allocation rate used in manufacturing to assign estimated overhead costs to production activities or output, based on a predetermined formula.
Direct Labor Hours
The total hours worked directly on the production of goods.
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