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Manufacturing Cost
The total expense incurred in producing a product, including the cost of direct materials, direct labor, and manufacturing overhead.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on the relationship between estimated annual overhead costs and estimated annual operating activity.
Machine-Hours
Machine-hours are a measure of the time a machine is operated within a given period, used for allocating machine-related costs to products based on usage.
Manufacturing Overhead
All production costs other than direct materials and direct labor, including costs related to running the factory.
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