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Cost Pool
A grouping of individual costs, typically by department or service center, from which cost allocations are made later.
Machine Hours
A measure of production time, quantifying the total hours a machine is operated within a specific period.
Overhead Absorption Rate
The method of allocating overhead costs to specific units of production, based on certain criteria like direct labor hours or machine hours.
Direct Labor Hours
The cumulative number of hours put in by workers who are directly engaged in the production process.
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