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Variable Manufacturing Overhead
Refers to the costs that vary with the level of production output, including items such as indirect materials and electricity to run machinery.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the accounting period begins based on an estimate.
Machine-Hours
A measure of the amount of time a machine is operated, used for allocating machine-related costs to individual units of production.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity base, such as labor hours or machine hours.
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