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Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated by dividing estimated overhead costs by an allocation base.
Direct Labor-Hours
The total hours worked by employees who are directly involved in the production process, used as a basis for allocating costs to products.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to each unit of production, based on estimated or budgeted overhead costs and activity.
Machine-Hours
A measure of production output or activity level based on the total hours machines are operating.
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