Predetermined Overhead Rate Calculator
Predetermined Overhead Rate Calculator | ||
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Parameter | Description | Example Value |
Estimated Total Overhead Costs | The total overhead costs estimated for the period. | $100,000 |
Estimated Total Activity Base | The total amount of the activity base estimated for the period (e.g., machine hours, labor hours). | 50,000 hours |
Predetermined Overhead Rate | The rate calculated to allocate overhead costs to products. Formula: Estimated Total Overhead Costs / Estimated Total Activity Base |
$2.00 per hour |