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Direct Materials Costs
The cost of raw materials directly used in the production of goods, which can be easily traced back to the finished product.
Predetermined Overhead Rate
The rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a consistent measure, such as direct labor hours.
Manufacturing Overhead
Indirect factory-related costs that are not directly tied to a specific product, such as maintenance and factory utilities.
Overapplied
In cost accounting, refers to a situation where the allocated amount of an indirect cost exceeds the actual incurred cost.
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