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Manufacturing Overhead
All indirect costs associated with the production process, such as utilities, maintenance, and management salaries, not directly tied to direct materials or direct labor.
Predetermined Overhead Rate
A rate used in cost accounting to allocate overhead costs based on an estimated activity level.
Direct Labor-hours
The hours that workers contribute directly towards the manufacture of goods over a specified period.
Fixed Manufacturing Overhead
Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.
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