How to Find Overhead Rate?

Answer Manufacturing and production companies spend copious amounts of time tracking costs necessary to create finished goods. One of three manufacturing costs tracked includes overhead. This includes all... Read More »

Top Q&A For: How to Find Overhead Rate

Would the base used to calculate the variable overhead rate be the same as the fixed overhead rate?

Yes. Calculate the variable overhead rate by dividing variable overhead by production to get a variable overhead per unit rate. Calculate the fixed overhead rate by dividing the fixed overhead by p... Read More »

How to Predetermine the Overhead Rate?

Cost accounting tracks costs for direct materials, direct labor and manufacturing overhead in a production system. Manufacturing overhead represents all indirect costs for items that apply to one o... Read More »

How to Calculate the Predetermined Overhead Rate?

In order to make a profit when running a business, you will need to determine what fees to charge. This is true whether you are providing services or selling products. One of the ways to determine ... Read More »

How to Calculate Work in Process From a Predetermined Overhead Rate?

Work in process is the amount of units a company currently has in the middle of their manufacturing cycle. This amount constitutes product that the company started to build, but has not yet finishe... Read More »