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Predetermined Overhead Rate
An estimated rate used to assign manufacturing overhead costs to products based on a certain activity (e.g., machine hours).
Variable Manufacturing Overhead
Costs of manufacturing that fluctuate with the level of production output, such as utility costs directly tied to machine operation.
Machine-Hours
A gauge for the level of production or activity, calculated through the duration machines are in use.
Manufacturing Overhead
Indirect costs related to manufacturing that are not directly tied to specific units produced, such as maintenance and utilities.
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