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The CLAS standards refer to
Predetermined Overhead Rate
An estimated rate used to allocate overhead costs to products or job orders, based on expected costs and activity levels.
Variable Manufacturing Overhead
Costs that fluctuate with the level of production, such as utilities or indirect materials, but are still related to the manufacturing process.
Machine-Hour
A unit of measure representing an hour of operation of a machine, used in calculating manufacturing costs and overhead rates.
Fixed Manufacturing Overhead
Costs associated with the production process that do not vary with the volume of production, such as factory rent.
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