Applied Overhead Calculator

Calculate Applied Overhead



Formula

The formula to calculate the applied overhead is:

\[ \text{AO} = R \times T \]

Where:

Definition

Example

Let's say the allocation rate is $50 per hour and the total time of production is 100 hours. Using the formula:

\[ \text{AO} = 50 \times 100 = 5000 \, \text{\$} \]

So, the applied overhead is $5000.

Extended information about "Applied-Overhead-Calculator"

Total Applied Overhead Calculation

Definition: Total applied overhead is the total amount of overhead costs assigned to products or services.

Formula: \( \text{Total Applied Overhead} = \text{Overhead Rate} \times \text{Actual Activity} \)

Example: \( \text{Total Applied Overhead} = 5 \times 200 \)

Applied Overhead Cost Formula

Definition: Applied overhead cost is the amount of overhead cost assigned to products or services based on a predetermined rate.

Formula: \( \text{Applied Overhead} = \text{Predetermined Overhead Rate} \times \text{Actual Activity Base} \)

Example: \( \text{Applied Overhead} = 4.5 \times 150 \)

Overhead Application Rate Calculator

Definition: The overhead application rate is used to allocate overhead costs to products or services.

Formula: \( \text{Overhead Application Rate} = \frac{\text{Total Overhead Costs}}{\text{Total Activity Base}} \)

Example: \( \text{Overhead Application Rate} = \frac{9000}{3000} \)