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Plantwide Overhead Rate
A single overhead absorption rate used throughout a manufacturing plant for allocating overhead costs to products.
Machine Hours
A measure of the amount of time a machine is operated in the production of goods.
Allocation Base
A criterion or standard used to distribute overhead costs among various products, services, or departments within a business.
Departmental Overhead Rate
The rate at which indirect costs are allocated to products or services based on department-specific activities.
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