Machine Hour Rate - What is overhead rate formula?

Q: What is overhead rate formula?

Calculate the Overhead Rate The overhead rate or the overhead percentage is the amount your business spends on making a product or providing services to its customers. To calculate the overhead rate, divide the indirect costs by the direct costs and multiply by 100.

Answer

Determine the Cost of Operating The amount that your company spends on producing goods or rendering services to clients is known as the overhead rate or overhead percentage. Dividing indirect expenses by direct costs and then multiplying by 100 is the formula for the overhead rate.

Machine Hour Rate - What is overhead rate formula?

Other useful ERP terms

AI suggestions