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Factory Overhead
Refers to indirect manufacturing costs, including expenses related to operating the factory environment, such as rent, insurance, and salaries for administrative personnel.
Machine Hours
A measure of production time or usage, indicating the total hours that machinery is operated in the manufacturing process.
Underapplied Amount
The shortfall when the allocated budgeted or standard cost amount is less than the actual expense.
Raw Materials
The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.
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