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Documentation > MAC-PAC Reference Library > Financials > Inventory Accounting > Key Concepts and Procedures > Calculations > Cost of Overhead

Cost of Overhead

 

Note that overhead is referred to interchangeably as "overhead" and "burden" throughout the software.

 

Standard Overhead Cost

=

(Std Machine Hrs * Machine-Based Overhead Rate) +

 

 

(Std Labor Hrs * Labor-Based Overhead Rate)

 

 

Actual Overhead Cost

=

(Actual Machine Hrs * Machine-Based Overhead Rate) +

 

 

(Actual Labor Hrs * Labor-Based Overhead Rate)