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Departmental Overhead Rates
The method of allocating overhead costs to specific departments within a company based on predetermined rates.
Manufacturing Cost
The total cost related to producing goods, including materials, labor, and overhead expenses.
Machine-Hours
A measure of production volume or activity based on the number of hours machines are operated within a specified period.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on estimates.
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