OVERHEAD COSTING FORMULAS |
|
Predetermined absorption rate |
estimated or budgeted overhead for the period estimated or budgeted units of base for the period |
Direct material cost % rate |
budgeted overhead x 100 budgeted direct material costs |
Direct labor cost % rate |
budgeted overhead x 100 budgeted direct labor cost |
Prime cost % rate |
budgeted overhead X 100 prime cost |
Direct labor hour rate |
budgeted overhead budgeted direct labor hours |
Machine hour rate |
budgeted overhead budgeted machine hours |
Cost unit rate |
budgeted overhead budgeted output |