jdiddyfuge
Oct 30, 2006, 01:38 PM
How do I calculate Direct labor overhead rate?
CliffARobinson
Mar 7, 2012, 07:08 PM
The full explanation is available on the Houston Chronicle's Small Business website (http://smallbusiness.chron.com/calculate-overhead-rate-based-direct-labor-cost-10313.html), here is a summary:
Step 1: Calculate the direct labor cost.
Step 2: Estimate the overhead costs.
Step 3: Calculate the overhead rate based on labor costs.