Applied Overhead Calculator

Enter the average overhead allocation rate and the total number of hours into the calculator to determine the applied overhead.

Applied Overhead Formula

The following formula is used to calculate an applied overhead.

AO = R * T

  • Where AO is the applied overhead ($)
  • R is the allocation rate ($/hr)
  • T is the total time of production (hr)

FAQ

What is applied overhead?

Applied overhead is a measure of the total cost of labor/overhead when a rate it applied to a certain task. In other words, it’s simply the overhead when looking at an activity level.


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