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Please solve my the question as soon as possible

jal (Student CA CPT ) (24 Points)

23 April 2014

In the cost a/c....

in the material or overhead chapter....how to find out overhead per hour ?

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S R P . (.) (420 Points)
Replied 23 April 2014

Calculation Overhead-cost-per-hour For smaller companies, to calculate your company’s overhead-cost-per-hour, use your total company overhead and total field hours. Divide your total overhead last year by the total number of productive hours (that is, revenue-generating hours). Use only the hours that your field employees actually worked for customers. Cleaning the shop, training hours, meeting hours, vacations, holidays, and sick days don’t count in this equation. If you have departmentalized, then do the same calculation as described above except for the overhead for each department. You’re likely to find one department has a much lower overhead-cost-per-hour than another. At this point, you know how little you can charge a customer in slower times of the year and still make a profit on an individual job.