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    hdcornett's Avatar
    hdcornett Posts: 1, Reputation: 1
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    #1

    Mar 4, 2009, 05:28 PM
    Formula for calculating overhead
    What is the formula for calculating total overhead
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Mar 4, 2009, 05:36 PM

    All expenses of manufacture other than
    Materials and labour divided by turnover
    Of manufactured goods.
    The rate can be got at per dollar of manufacture.
    The total can be applied to the Cost of Goods
    Manufactured.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #3

    Mar 4, 2009, 09:30 PM

    There isn't a formula for overhead. What accounts are you looking at, then I can tell you which are overhead...
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #4

    Mar 4, 2009, 10:53 PM

    There are many formulas for overhead!

    I just came across a new one from
    One of the questions here:-

    Manufacturing overhead was applied at the rate of 150% of direct labor cost.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
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    #5

    Mar 5, 2009, 07:03 AM

    I would call that an overhead allocation rate. I thought he was talking about calculating total overhead.

    Because overhead is many different things if you are trying to calculate the total there is no one formula. I guess I misread the question, if you are talking about allocating overhead there are many different ways and formulas involved. No sense in arguing semantics though.
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