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Capacity
The maximum level of output that a company can sustain to produce goods or services.
Estimated Activity
An approximation of the level of operational or production activity expected in a certain period, typically used for budgeting and costing.
Unused Capacity
The portion of a company's production or operational potential that is not currently being utilized.
Predetermined Overhead Rate
A rate calculated before the period begins, used to allocate manufacturing overhead costs to products based on a particular activity base, such as machine-hours or labor-hours.
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