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When Max's father installed a new ceiling fan in his room, the "whirring" sound initially disturbed Max's sleep. After a few nights, however, Max was back to sleeping normally, as if the fan did not bother him at all. Max's filtering out of the fan's noise is best described as ____.
Predetermined Overhead Rate
The rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.
Direct Labor-Hours
A measure used in accounting to allocate costs, referring to the total hours worked by employees directly involved in the manufacturing process.
Job-Order Costing System
A cost accounting system that accumulates costs incurred according to each job or project, suitable for industries where goods or services are produced on a custom basis.
Predetermined Overhead Rate
is calculated before a period begins and is used to allocate manufacturing overhead costs to products based on a chosen activity basis, such as labor hours or machine hours.
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