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To circumvent the vagueness of the best interest of the child standard, many states have adopted:
Machine-Hours
A measure of the time a machine is operated, used as a basis for allocating manufacturing overhead in some costing systems.
Predetermined Overhead Rate
A calculated rate designed for allocating manufacturing overhead expenses to specific production units, based on a selected activity base.
Manufacturing Overhead
All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include indirect materials, indirect labor, and other expenses.
Machine-Hours
A measurement of the amount of time a machine is operated in a given period, used for allocating manufacturing costs to products.
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