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Predetermined Overhead Rate
A rate used to apply manufacturing overhead costs to products or job orders, calculated before the periods in which it is applied.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, including but not limited to utilities, depreciation, and salaries of supervisors.
Direct Labor
Refers to the wages and benefits of employees who are directly involved in the production of goods.
Machine Hours
The total number of hours that machinery operates during a specific period for manufacturing or production processes.
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