Business Studies, asked by Kingmanishkumar8639, 11 months ago

How to calculate service company labour and overhead rates?

Answers

Answered by Anonymous

3

Divide total overhead (calculated in Step 1) by the number of direct labor hours. Therefore, for every hour of direct labor needed to make books, Band Book applies $25 worth of overhead to the product. Multiply the overhead allocation rate by the number of direct labor hours needed to make each product.

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