Overhead Rates Window

The overhead costs are entered into the ‘Overheads rates’ window that can be reached from the button OH rates from the Rollup window.

The overhead rates that can be optionally applied to the product costs are entered under five headings:

Purchasing overhead rates: corresponds to the purchasing function overhead cost spread over the total purchased material costs.

Plant Overhead rates on labor costs: corresponds to the plant overhead costs spread over the total direct labor costs.

Plant Overhead rates on machine costs: corresponds to the plant overhead costs spread over the total manufacturing machine costs.

Company Overhead rates on labor costs: corresponds to the company overhead costs spread over the total direct labor costs.

Company Overhead rates on machine costs: corresponds to the company overhead costs spread over the total of machine costs.

These rates permit the user to estimate budgets or to carry out simulations, as for the next budget.