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predetermined overhead rate

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

Usually an annual manufacturing overhead rate established just prior to an accounting year and based on budgeted amounts.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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