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A mathematical formula for the deficit would be
Total Manufacturing Cost
The cumulative expense of producing goods, including labor, materials, and overhead costs.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.
Machine-Hours
A measure of the amount of time machines are run in the production process, used in allocating costs to products.
Manufacturing Overhead
All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.
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