The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability ...

To calculate the overhead rate, the labor overhead expense is divided by the labor overhead base ($180,000 / $120,000 = 150 percent labor overhead rate). This is the rate applied to each dollar of ...

How Manufacturing Overhead May Be Under-Applied. Manufacturing overhead is applied to products on the basis of a predetermined overhead rate. This rate is calculated as the total estimated ...