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Manufacturing Overhead
Indirect factory-related costs that are incurred when producing a product, such as the cost of utilities, maintenance, and salaries of supervisors.
Machine-Hours
A measure of production output or activity in terms of the total hours that machines are operated within a specific period.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the production period based on estimated costs.
Labor-Hours
Labor-hours amount to the total time workers spend on production or service delivery, an important factor in determining labor efficiency and cost control.
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