overhead rate
Definition
Actual (or budgeted) overhead cost for a given period divided by actual (or budgeted) measure of production activity (such as direct labor cost, labor hours, or machine hours). It expresses overhead costs in terms of a related-base for allocating them over a given period. Also called predetermined overhead rate when using budgeted costs.
overhead rate is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
overhead rate appears in the definitions of the following terms: fixed production overhead variance, fixed production overhead volume variance, fixed production overhead volume capacity variance, variable production overhead efficiency variance, fixed production overhead volume efficiency variance, fixed production overhead expenditure variance, variable production overhead expenditure variance and predetermined overhead rate
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