Common in the manufacturing industry, the predetermined overhead rate for machine hours is a production overhead cost. The rate is used to identify the expected costs of machine production, which ...

Overhead rates are measures of business expenses other than those directly related to producing or providing products and services. In a large or diversified company, multiple overhead rates may be ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

Get free guidance and exclusive deals to grow your business with business.com+ Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip ...

As a former corporate controller and senior vice president of operations, I have experienced both sides of allocated overhead. I have learned manufacturing executives have more control over costs ...

Overhead allocation is a source of great disagreement in our industry. Should the allocation be based on job price? On job cost? Per project? Or per field man-hour. We understand the pros and cons of ...

The burden rate can help you target profitability by exploring the relationship between direct and indirect costs. Many, or all, of the products featured on this page are from our advertising partners ...

Every now and then, you must be controversial and address a subject where your beliefs run counter to common practice. Overhead and overhead-cost recovery is one of these subjects. The controversy has ...