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


  • 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.

  1. First, determine the budgeted overhead ($). 
  2. Next, determine the level of activity ($). 
  3. Next, gather the formula from above = VO = BO / LA.
  4. Finally, calculate the Variable Overhead.
  5. 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