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Manufacturing Overhead
Manufacturing overhead includes all manufacturing costs other than direct materials and direct labor, such as rent, utilities, and depreciation on manufacturing facilities.
Predetermined Overhead Rate
A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.
Variable Manufacturing Overhead
Costs that vary with the level of production output and may include items such as utility expenses and raw materials.
Direct Labor-Hours
Total time spent by staff members who are directly part of the manufacturing operations.
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