Enter the budgeted overhead ($) and the level of activity ($) into the Calculator. The calculator will evaluate the Variable Overhead.

## Variable Overhead Formula

VO = BO / LA

Variables:

- VO is the Variable Overhead ($/$)
- BO is the budgeted overhead ($)
- LA is the level of activity ($)

To calculate Variable Overhead, divide the budgeted overhead by the level of activity.

## How to Calculate Variable Overhead?

The following steps outline how to calculate the Variable Overhead.

- First, determine the budgeted overhead ($).
- Next, determine the level of activity ($).
- Next, gather the formula from above = VO = BO / LA.
- Finally, calculate the Variable Overhead.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

budgeted overhead ($) = 58

level of activity ($) = 90