Examlex
Explain two types of coding schemes and give examples of their use.
Machine-Hours
The total hours that machinery is in operation during a production process.
Markup
The amount added to the cost price of goods to cover overhead and profit, determining the selling price.
Manufacturing Overhead
Manufacturing overhead includes all manufacturing costs other than direct materials and direct labor, such as rent, utilities, and depreciation on manufacturing facilities.
Predetermined Overhead Rate
A rate calculated at the beginning of an accounting period to allocate overhead costs to products or services based on a relevant activity base.
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