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A recessionary gap most likely comes from
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to products based on a specific activity base.
Machine-Hours
A measure of production output or capacity, indicating the total hours that machinery is operated over a specific period.
Fixed Overhead
Regular, unchanged costs incurred by a business for its operations regardless of varying levels of production, such as rent, salaries, and insurance.
Unused Capacity
The available resources or production capabilities that are not currently being utilized.
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