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Standard Machine-Hours
An accounting measure used to allocate manufacturing overhead costs to products based on the number of hours machines are expected to operate.
Variable Overhead Rate Variance
The difference between the expected (standard) cost of the variable overhead based on the actual production volume and the actual variable overhead incurred.
Standard Machine-Hours
A predetermined amount of time that a machine is expected to operate to meet production requirements.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, including rent, utilities, and salaries for employees not directly involved in production.
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