predetermined overhead rate

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Predetermined Overhead Rate

Predetermined Overhead Rate Definition A company uses a predetermined overhead rate to allocate overhead costs to the costs of products. Indirect costs are estimated, a cost driver is selected, cost driver activity is estimated, and then indirect costs are applied to production output based on a formula using these data. Predetermined Overhead Rate Example For

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Indirect Labor

See Also: Indirect Materials Accounts Payable Audit Committee Managed Sales And Use Tax Audit Programs Carried Interests Indirect Labor Definition In accounting, indirect labor is a category of indirect cost. It refers to labor costs incurred during a service or production process, but are not directly traceable to a cost object. Consider them overhead costs and treat

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