Definition

Standard predetermined overhead rate

Standard predetermined overhead rate is an overhead rate determined by dividing budgeted overhead costs by an expected standard activity index.

Share it:  Cite

More from this Section

  • Overhead volume variance
    The overhead volume variance refers to the difference between normal capacity hours and ...
  • Amortization
    Amortization means the allocation of the cost of an intangible asset to expense over its ...
  • Consistency principle
    Consistency principle dictates that a company uses the same accounting principles and ...
  • Depreciable cost
    Depreciable cost is the cost of the asset less its salvage value. It represents the total ...
  • Voucher system & Voucher
    A voucher system is a network of approvals by authorized individuals, acting independently, ...