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Machine-Hours
A measure of production output or activity, where one machine-hour equals one hour of operation of a machine.
Assembly Department
An area in a manufacturing plant where parts are put together to form the end products.
Overhead Rate
A calculated rate used to allocate overhead costs to products or services, usually determined by dividing total overhead costs by an allocation base.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated based on the estimated costs and activity levels before the period begins.
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