3 years ago

How do you figure overhead rate?

1 answer:

7 0

Answer:

To calculate the overhead rate, divide the indirect costs by the direct costs and multiply by 100. If your overhead rate is 20%, it means the business spends 20% of its revenue on producing a good or providing services. A lower overhead rate indicates efficiency and more profits.

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Read 2 more answers

How do you figure overhead rate?​

How do you figure overhead rate?