Examlex
The term EI __________.
Capacity
The maximum level of output that a company can sustain to produce in a given period under normal circumstances.
Machine-Hours
Machine-hours refer to the total time that machinery is in operation, often used as a basis for allocating manufacturing overhead costs.
Unused Capacity
The portion of a company's production capability or resources that is not currently being utilized to generate revenue or output.
Predetermined Overhead Rate
A rate calculated before a production period based on estimated overhead costs and activity levels, used to allocate overhead costs to products.
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