Applied Overhead Calculator Tool

Applied Overhead Calculator

Applied Overhead Calculator

Applied Overhead Calculator

Component Description
Predetermined Overhead Rate The rate used to allocate overhead costs to products or services, calculated before the period begins.
Actual Activity Base The actual amount of the activity base used, such as direct labor hours or machine hours.
Applied Overhead The overhead cost assigned to products or services based on the predetermined overhead rate and the actual activity base.
Formula Applied Overhead = Predetermined Overhead Rate × Actual Activity Base
Purpose Used to allocate overhead costs to products or services, helping to determine the total cost of production.

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