Examlex
What is "base" another name for?
Variable Manufacturing Overhead
Costs that fluctuate with production volume, such as utilities for the manufacturing plant.
Fixed Manufacturing Overhead
The portion of fixed costs that is directly associated with the production process, including salaries of managers and factory maintenance.
Predetermined Overhead Rate
An estimated charge used for cost allocation within a budget or accounting period, calculated by dividing the estimated manufacturing overhead costs by an allocation base.
Machine-Hours
A measure of production output or work, indicating the total time machines are operated.
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