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

    Oct 30, 2006, 01:38 PM
    How to calculate Direct labor overhead rate
    How do I calculate Direct labor overhead rate?
    CliffARobinson's Avatar
    CliffARobinson Posts: 1,416, Reputation: 101
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    #2

    Mar 7, 2012, 07:08 PM
    The full explanation is available on the Houston Chronicle's Small Business website, 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.
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