overhead application rate
[ˈoʊvərˌhɛd ˌæplɪˈkeɪʃən reɪt]
nounpl: overhead application rates
taxa de aplicação de custos indiretos
1. A predetermined rate used in cost accounting to allocate overhead costs to products or services based on a specific allocation base, such as direct labor hours, machine hours, or direct material costs
The company calculated an overhead application rate of $15 per direct labor hour to allocate manufacturing overhead to production jobs.
A empresa calculou uma taxa de aplicação de custos indiretos de R$ 15 por hora de trabalho direto para alocar os custos indiretos de fabricação aos trabalhos de produção.
2. The ratio used to distribute indirect manufacturing costs to cost objects during the production process
By using an overhead application rate, the accounting department can assign overhead costs systematically to each product unit.
Ao usar uma taxa de aplicação de custos indiretos, o departamento de contabilidade pode atribuir sistematicamente os custos indiretos a cada unidade de produto.
This is a technical term primarily used in accounting, finance, and manufacturing contexts. It is essential in cost accounting systems, particularly in manufacturing industries in both Brazil and the United States. Brazilian companies increasingly adopt these international accounting standards for overhead allocation, especially those competing globally or following IFRS standards.
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