For your calculations to be accurate, it's essential to know what is covered as an overhead cost. Make sure you track this along with your expenses. Note what’s excluded from the formula above, ...

To calculate the rate of overhead, divide the indirect costs by the allocation measure you're using. So, the denominator in your formula may be the total number of direct labor hours involved.

In linear equations, the breakeven point is the place where two ... All units produced must have a marginal cost to be considered variable. A variable manufacturing overhead cost is one example of an ...