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Predetermined Overhead Rate
A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.
Variable Manufacturing Overhead
Costs that vary with production volume, such as indirect materials and utilities, related specifically to the manufacturing process.
Labor-Hours
The total number of working hours clocked by employees within a specific period, reflecting the labor input.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual units of output on the basis of some common activity, such as machine-hours or labor hours.
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