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The rules of day-to-day operations necessary to carry out laws are found in the
Manufacturing Overhead
All indirect costs associated with the production process, excluding direct material and direct labor costs.
Predetermined Overhead Rate
A rate established in advance to allocate overhead costs to products or services based on a specific activity base.
Machine-Hours
A measure of production time where one machine-hour equals the operation of one machine for one hour.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs to products.
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