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View Full Version : Direct-labor based overhead


Desiree Luna
May 3, 2009, 04:24 PM
I need to compute the overhead rate

morgaine300
May 4, 2009, 12:53 AM
Overhead rate is estimated overhead costs divided by the estimated activity base. In this case your activity base is direct labor, so you divide by estimated direct labor. (Although you have not said if it's direct labor hours or direct labor dollars. But just whatever the problem told you.)