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Explain the legal ramifications of attempts to control distribution functions.
Predetermined Overhead Rate
A rate established in advance to allocate overhead costs to products or services based on a specific activity base.
Machine-Hours
A measure of production time where one machine-hour equals the operation of one machine for one hour.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overhead costs to products.
Machining
A manufacturing process involving the shaping of metal or other materials through controlled material-removal techniques.
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