### Category Thew8079

Overhead Rate = 40,000 / 5,000. Overhead Rate = \$8 per working hour Explanation. The activity-based formula simply gives us the dollar value of amount per activity which is then can be multiplied to determine the cost of the total products assigned or produced in that particular cost pool. The indirect cost rate is simply an arithmetic calculation of dividing a pool of expenses (numerator) by an allocation base (denominator) such as direct labor cost or total direct costs plus overhead. Overhead Rate: In managerial accounting , a cost added on to the direct costs of production in order to more accurately assess the profitability of each product. Overhead costs are all costs that

## 22 Jun 2011 Indirect Costs are further broken into sub pools (or categories). Some companies (including Zekiah) divide their Overhead Pool into two

### (G&A) Costs. Overhead. Costs. Total Costs = Direct Costs + Indirect Costs Indirect Cost Rate. (For a Given Cost. Pool). Total Indirect Costs in Given Pool.

2 Dec 2016 You need to complete a journal entry to move the costs from manufacturing overhead, which is a general asset pool, to finished goods, which is