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What are the objectives of application controls?
Plantwide Factory Overhead Rate
A single overhead absorption rate calculated by dividing total factory overheads by total machine hours or labor hours, applied uniformly across all products and services.
Machine Hours
A measure of the amount of time a machine is operated, used in costing and operational efficiency analysis.
Single Plantwide Factory Overhead Rate
A method of allocating manufacturing overhead costs uniformly across all units produced within a single factory.
Direct Labor Hours
The total hours worked by employees who are directly involved in the production of goods or services.
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