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Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, based on a cost driver, calculated before the period begins.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for managers.
Predetermined Overhead Rates
An estimated rate used in cost accounting to allocate overhead costs to products or services based on a set formula.
Machine-Hours
A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.
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