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The halo effect occurs when
Variable Manufacturing Overhead
Costs of manufacturing that change with production volume, such as utilities or indirect materials, not fixed over the short term.
Machine-Hours
A measure used in manufacturing to allocate costs to products or job orders based on the number of hours a machine is used.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead costs to products, calculated before the production period begins.
Variable Manufacturing Overhead
The portion of variable overhead costs that are directly associated with the manufacturing process, including costs like indirect materials and utilities.
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