Formulae Sheet

[Geetanjali]

Following are some formulae from SG D3 - Accounting for overheads

-------------------------Total overhead allocated / apportioned
Overhead absorption rate= -------------------------------------
--------------------------------Total of allocation basis

-----------------------------------Actual overheads for the period
Actual overhead absorption rate = -------------------------------------
-------------------------------Actual number of units produced in the period

-----------------------------------------Budgeted overhead for the period
Pre-determined overhead absorption rate = --------------------------------
------------------------------------Budgeted number of units for the period

--------------------------Total budgeted overhead for entire factory for the period
Blanket overhead absorption rate = ----------------------------------------
------------------------------Total budgeted labour hours or machine hours

All the best :)

[Geetanjali]

Few more formulae from Accounting for overheads:


--------------------Total overhead allocated / apportioned
Labour hour rate =----------------------------------------
-----------------------Direct labour hours worked


----------------------------Amount of overhead
Machine hour rate = ---------------------------------------------
--------------------Machine hours consumed in the departmental


---------------------------------------Amount of overhead
Direct material cost percentage rate = ----------------------- x 100
----------------------------------------Direct material cost


-----------------------------------Amount of overhead
Direct labour cost percentage rate = ------------------------------- x 100
------------------------------------Direct labour cost


-------------------------------Amount of overhead
Prime cost percentage rate = ----------------------- x 100
----------------------------------Prime cost



Regards,
Geetanjali