Applied Overhead Calculator

Applied Overhead Calculator calculator can be used to calculate the applied overhead based on direct labor hours and an overhead rate.

Input Parameters

Calculation Results

Calculation Formula

Applied Overhead = Direct Labor Hours × Overhead Rate

Where:
Direct Labor Hours - The total number of direct labor hours worked.
Overhead Rate - The overhead cost per direct labor hour.

Applied Overhead Calculator Calculator Usage Guide

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

How to Use the Calculator

  1. Enter the total number of direct labor hours in the "Direct Labor Hours" field.
  2. Enter the overhead rate per hour in the "Overhead Rate ($ per hour)" field.
  3. Click the "Calculate" button to compute the applied overhead.
  4. The result will be displayed in the "Applied Overhead" field.

Understanding Applied Overhead

Applied overhead is the portion of manufacturing overhead that is allocated to a product or job based on a predetermined overhead rate. It is calculated by multiplying the direct labor hours by the overhead rate.

Example

If a company has 100 direct labor hours and an overhead rate of $20 per hour, the applied overhead would be:

Applied Overhead = 100 hours × $20/hour = $2,000