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Add or subtract. Assume all variables represent positive real numbers.
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Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base.
Machine-Hours
A measure of production time, representing the hours a machine is operated within a given period.
Direct Labor-Hours
A metric for quantifying the manual work done by employees on the production floor, correlating with the labor costs of manufacturing.
Plantwide Predetermined Rate
A single overhead rate calculated by dividing total estimated manufacturing overhead costs by the total estimated amount of allocation base, applied throughout the plant.
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