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Overhead Allocation Base
A measure or standard used to distribute indirect costs to various cost objects, such as products or departments, typically involving labor hours, machine hours, or cost centers.
Departmental Overhead Rate
A rate used to allocate overhead costs to specific departments, based on criteria such as department size or usage of overhead resources.
Machine Hours
A measure of the total operating time of machinery within a certain period.
Departmental Overhead Rates
The allocation of indirect costs to specific departments based on their respective shares of direct costs or activity drivers.
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