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A descriptive model describes how to make a system function according to the model.
Fixed Costs
Costs that do not vary with the level of production or sales, remaining constant regardless of business activity levels.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.
Estimated Machine-Hours
The anticipated amount of machine time required to complete a job or process.
Actual Machine-Hours
The actual number of hours that machines are run during a production period.
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