A single overhead rate for assigning all of the manufacturing production and service department costs to products. This rate is less accurate than departmental rates if a company manufactures a diverse group of products.
Overhead rate
The rate (often expressed per hour) applied to the time taken to produce a product/service, used to allocate production overheads to particular products/services based on the time taken.
Overhead rate: The ratio of overhead costs to the total quantity of the cost allocation base. This ratio is used to allocate overhead costs to cost objects.
...
Overhead rate - Calculated by totalling the relevant expenses excluding labour and materials, and dividing this number by the total cost of labour and other materials.
Overhead rate = (Overhead budget)/(Estimated number of machine hours)
= $1,000,000/100,000 = $10.00 per machine hour ...
Normalized overhead rate
A normalized overhead rate is a rate based on the average activity of many periods " past and present " rather than based only on the expected activity of the current period.
Normal service cost ...
predetermined overhead rate
rate, based on budgeted factory overhead cost and budgeted activity, that is established before a period begins.
Predetermined Overhead Rate = ...
One way this is done is by using a predetermined overhead rate. Assume Jack sat down at the beginning of the year with his accountant. Together they carefully considered all of the production overhead that was anticipated during the year.
Multiple Overhead Rates (in accounting)
Variable Cost Percentage (in accounting)
Electronic Check Presentment (ECP) (in banking)
bird's nest soup (culinary)
risotto (culinary)
shark's fin (culinary)
digital workflow (technology) ...
 See also: Direct labor, Expense, Cost of goods, Cost of goods sold, Job
  
|
RSS
