Common in the manufacturing industry, the predetermined overhead rate for machine hours is a production overhead cost. The rate is used to identify the expected costs of machine production, which ...

A business incurs expenses when producing its revenues. Revenues minus expenses equal the business's net income, or the change in its financial circumstances from running its operations for the time ...

As a former corporate controller and senior vice president of operations, I have experienced both sides of allocated overhead. I have learned manufacturing executives have more control over costs ...