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Overhead Efficiency
A measurement of how effectively a company uses its overhead costs in generating revenue.
Fixed Overhead Budget
A plan for the fixed costs involved in operating a business, which do not vary with levels of production or sales.
Standard Machine-Hours
The predetermined amount of time that machines are expected to operate to produce a set quantity of goods.
Variable Overhead Rate
Variable overhead rate is the ratio of variable overhead costs incurred for every unit of activity or a specific measure of activity, such as labor hours.
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