Small businesses that manufacture products are required to account for all of the costs of production. One of these costs, overhead, is the cost of production that cannot be individually traced to ...

Manufacturing overhead is applied to products on the basis of a predetermined overhead rate. This rate is calculated as the total estimated overhead for the period divided by the estimated activity ...

Last month, we provided an article on overhead calculation and rate. That was Overhead Rates 101. In this month’s guest column, Ken Hedlund, Somerset CPAs (somersetcpas.com), introduces a more ...