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Actual Machine-Hours
The actual number of hours that machines are run during a production period.
Variable Manufacturing Overhead
Refers to the production costs that change in proportion to the level of production activity, such as utilities or raw materials needed for manufacturing.
Machine-Hours
A measure of the amount of time a machine is operated in the production process, often used in costing and budgeting.
Predetermined Overhead Rate
A rate calculated before an accounting period begins, used to allocate manufacturing overhead to individual jobs or units based on a consistent measure, such as direct labor hours.
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