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Fixed Manufacturing Overhead
Costs in manufacturing that do not vary with the level of production, including factory rent, salaries of permanent staff, and equipment depreciation.
Machine-Hours
A measure of the amount of time machines are operated in the manufacturing process, used as a basis for allocating costs.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base such as labor hours or machine hours.
Direct Labor-Hours
The total hours of labor directly involved in manufacturing a product, used in calculating labor costs and efficiency in production.
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