Examlex
Which statement is true?
Machine-Hours
A measure of the total run time that a machine is utilized for production over a specific period, often used as a basis for allocating overhead costs.
Direct Labor-Hours
A measure of the total hours worked by employees who are directly involved in the manufacturing process or production of goods.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins by dividing estimated overhead costs by an estimated allocation base.
Machine-Hours
A measurement of the amount of time machines are operated in the production process, used as an allocation base for applying manufacturing overhead.
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