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