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Jeffersonians believed in
Underapplied
A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead.
Predetermined Overhead Rate
An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a specific activity base such as labor hours.
Direct Materials
Raw materials that can be directly traced to the production of goods, distinct because they are an integral part of the finished product.
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