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Machine-Hours
A measurement of the amount of time a machine is operated in a given period, used for allocating manufacturing costs to products.
Predetermined Overhead Rate
The predetermined overhead rate is calculated before a period begins and is used to estimate the manufacturing overhead cost to be allocated to individual units of production.
Manufacturing Overhead
Indirect factory-related costs that are incurred when producing a product, including costs related to maintenance, utilities, and equipment depreciation.
Direct Labor-Hours
A measure of the time workers or employees directly spend producing goods or performing services.
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