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Applied Overhead
The process of assigning a portion of estimated overhead cost to specific production jobs or departments based on a predetermined rate.
Actual Overhead
includes the real, as incurred, indirect costs associated with manufacturing a product or providing a service, including utilities and rent.
Cost Allocation
The process of assigning indirect cost to a cost object, such as a job.
Factory Overhead
The indirect costs associated with manufacturing, including utilities, maintenance, and salaries of employees not directly involved in production.
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