The priority order for the following groups are (highest = 1),
Definitions:
Plantwide Predetermined Rate
A single overhead absorption rate calculated for an entire manufacturing facility to allocate overhead costs to products.
Markup
refers to the amount added to the cost price of goods to cover overhead and profit.
Machine-Hours
A measure of production volume based on the total hours machines are run in the manufacturing process, often used to allocate overhead costs.
Departmental Predetermined Rates
The estimated overhead rates calculated for specific departments within a company to allocate costs appropriately.
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