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Hawthorne effects are less likely when researchers use covert observational methods.
Underapplied
A situation where the actual manufacturing overhead costs are more than what was allocated to products.
Predetermined Overhead Rate
A calculated rate that estimates the manufacturing overhead cost per unit of production, based on expected or historical data.
Machine-Hours
A measure of the amount of time a machine is operated during a given period, commonly used in manufacturing to allocate costs or to measure productivity.
Manufacturing Overhead Costs
All indirect costs associated with the manufacturing process, including utilities, rent, and salaries for non-direct labor.
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