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Predetermined Factory Overhead Rate
A rate calculated before a period begins, used to allocate estimated overhead costs based on a selected activity base to individual products.
Actual Activity Base
A measure used to allocate costs based on the actual level of activity or usage, often used in budgeting and accounting.
Predetermined Overhead Rate
An estimated charge used to assign manufacturing overhead costs to individual units of production, calculated before the period begins.
Direct Labor Hours
Direct Labor Hours refer to the amount of time spent by workers directly involved in the production of goods or services, used as a basis for allocating labor costs to products.
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