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Machine-Hour
A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead costs.
Variable Overhead
Costs of overhead that vary with the level of production activity, such as utilities for machinery or materials handling expenses.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.
Variable Component
The part of a cost or expense that varies directly with the level of activity or production volume, in contrast to fixed costs.
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