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Stage 3 of labor ends with the
Predetermined Overhead Rate
An estimated overhead rate used to allocate manufacturing overhead costs to products, calculated before the start of a period.
Machine-Hours
A measure of production output or activity based on the total hours that machines are operating.
Direct Labor-Hours
The total hours worked by employees who are directly involved in the manufacturing process of a product.
Departmental Predetermined Rates
Specific predetermined overhead rates set for different departments within a company, allowing more accurate product costing.
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