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Predetermined Overhead Rate
A rate calculated at the beginning of a period, used to allocate manufacturing overhead to products based on a particular activity base, such as machine hours or labor hours.
Machine-Hours
A measure of production output or activity based on the hours that machinery is operational.
Plantwide Predetermined Overhead Rate
A single overhead rate calculated by dividing estimated total manufacturing overhead costs by an estimated total cost driver, applied throughout the entire plant.
Job-Order Costing System
An accounting method that tracks the costs associated with producing a specific item or providing a particular service.
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