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Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated before the production process begins.
Job-Order Costing
An accounting methodology used to assign costs to specific jobs or batches, enabling the calculation of profitability per job.
Machine-Hours
A measure of production time, calculated by multiplying the number of machines by the hours they are in operation.
Predetermined Overhead Rate
The rate calculated prior to the accounting period that is used to apply overhead costs to products or job orders, based on estimated costs and activity levels.
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