Variable Overhead Calculator

Variable Overhead Calculator calculator can be used to calculate variable manufacturing overhead costs based on activity levels, helping businesses determine their cost of production accurately.

Input Parameters

Calculation Results

Calculation Formula

Total Variable Overhead = Activity Level × Variable Overhead Rate

Where:
Activity Level: Number of units produced
Variable Overhead Rate: Cost per unit of activity

Total Overhead = Total Variable Overhead + Fixed Overhead

Where:
Fixed Overhead: Fixed manufacturing overhead costs

Total Variable Overhead:

$0.00

Total Overhead:

$0.00

Variable Overhead Calculator Calculator Usage Guide

Learn how to use the Variable Overhead Calculator calculator and its working principles

How to Use This Calculator

  1. Enter the number of units produced in the Activity Level field.
  2. Enter the variable overhead rate per unit in the Variable Overhead Rate field.
  3. Enter the fixed overhead cost in the Fixed Overhead Cost field.
  4. Click the Calculate button to see the results.
  5. Use the Reset button to clear all inputs and start over.

Understanding Variable Overhead

Variable overhead costs are manufacturing costs that vary directly with the level of production activity. These costs increase as production increases and decrease as production decreases. Examples include indirect materials, indirect labor, and utility costs that vary with production volume.

Example Calculation

Suppose a company produces 1,000 units, with a variable overhead rate of $5 per unit and fixed overhead costs of $10,000.

  • Total Variable Overhead = 1,000 units × $5/unit = $5,000
  • Total Overhead = $5,000 + $10,000 = $15,000

Applications

This calculator can help businesses:

  • Accurately determine their total manufacturing costs
  • Set appropriate selling prices for their products
  • Perform cost-volume-profit analysis
  • Making informed decisions about production levels and cost control