Home > Terms > English, UK (UE) > Overhead rate
Overhead rate
A percentage or fixed-dollar amount that allocates department or product overhead expenses to production on a labour hour, machine hour, labour dollar, material dollar or unit basis. Higher overhead rates indicate the grouping of a greater number of costs or pools on a general basis, and less identification of the direct drivers of those costs. (syn: burden rate)
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- Part of Speech: noun
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