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Predetermined Overhead Rate
A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated overhead costs and an allocation base.
Direct Labor-Hours
The total hours worked by employees directly involved in the production of goods or services.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, such as maintenance, utilities, and quality control.
Machine-Hours
A measure of production time that tracks the number of hours a machine is operated.
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