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That division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential is a major drawback of the:
Machine-Hours
A measure of production output or activity based on the number of hours machines are operated in the manufacturing process.
Predetermined Overhead Rate
A predetermined overhead rate is the rate used to allocate estimated overhead costs to products or services based on a specific cost driver.
Machine-Hours
The total hours that machinery is operated in the production process, used as a basis for allocating manufacturing overhead.
Predetermined Overhead Rate
A rate calculated before a period begins, based on the estimated overhead costs and expected activity levels, used to apply overhead to products or job costs.
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