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Machine-Hours
A measure of the amount of time machinery is in operation, commonly used as a basis for allocating machine related costs to products.
Manufacturing Overhead
All indirect costs associated with the production process, including equipment maintenance, utilities, and factory management salaries.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products, based on a planned level of activity.
Capacity
The maximum level of output that a company can sustain to produce in a given period.
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