EFT Debits are processed in the evening. Intecon provides access to a service that gives the business or organisation the ability to verify the bank account details prior to loading the payment instruction.
Whereas the cost variances for direct materials, direct labor, and variable overhead all use the same two formulas, the cost variances for fixed overhead are different, and do not use these formulas at all.
The overhead rate is the ratio of the overhead cost to an allocation base, such as direct labor, equipment hours and factory space.The overhead rate based on labor hours or costs assumes that overhead costs are proportional to labor hours. Step 1.Calculate the direct labor cost.ip. 1  You may also calculate the overhead rate based on direct labor hours. 2  Divide the overhead costs by the direct labor hours over the same measurement period. 3  In the example, the overhead rate is $20 for each direct labor hour ($2,000/100).