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Predetermined Overhead Rate
An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a particular activity (e.g., machine hours, labor hours).
Direct Material Cost
The expense of raw materials and components directly used in the production of a product.
Overhead Rate
A calculation used to allocate overhead costs to produced goods or services, often based on direct labor hours or machine hours.
Direct Labor Cost
The wages and related expenses for workers who are directly involved in the production of goods or services.
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