Respuesta :
This behaviour is tied to machine hours, according to ABC. $21.10 machine per hour is the activity rate for this activity.
= $2,100,000 ÷ 1,000,000
= $21.10 machine per hour
What is Overhead Rate?
The overhead rate, also referred to as the overhead percentage, is the amount your business spends on manufacturing items or providing services to customers.
To calculate the overhead rate, divide the indirect costs by the direct costs and multiply the result by 100. The overhead rate is a cost involved in producing a good or service.
The cost of the corporate headquarters is an example of an overhead expense that isn't directly tied to output. An overhead rate is applied to the direct production-related costs in order to disperse or allocate the overhead costs based on specific indicators.
A cost associated with the production of a good or service is called an overhead rate. Overhead costs are expenses, such as the cost of, that are not directly related to output.
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