Overhead Rate Calculation

In order to allocate the overhead costs to the cost centers, the overhead rate must be calculated.

The overhead costs are calculated by the relation between the direct costs of the primary cost center and the sum of cost center costs of the secondary cost center. The overhead rate calculation allows you to break down the overhead costs over primary and secondary cost centers in detail. Further you can identify cost centers whose costs can be optimized.

The following sections are intended to give you a quick introduction to the FACTON Should Costing overhead cost calculation. You will gain an overview of the most important features and options.

Using a sample calculation "Motor Shaft", you learn how to create, structurally build, calculate and optimize an overhead rate calculation.