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