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Manufacturing Overhead Account
An account used to record all indirect costs associated with the production process, including utilities, rent, and salaries for managers.
Work in Process
Inventory items that are in the production process but are not yet completed goods.
Predetermined Overhead Rate
A rate calculated before a period begins by dividing estimated manufacturing overhead costs by an estimated allocation base, used to allocate overhead costs to products.
Direct Labor-Hours
The total hours worked by employees who are directly involved in the manufacturing process or production of goods.
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