Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Predetermined overhead rate, abbreviated as POHR, is the allocation rate that is assigned to products or job orders at the beginning of a project.

 $$\large{ POHR = \frac{ MOHR }{ ABP } }$$

### Where:

$$\large{ POHR }$$ = predetermined overhead rate

$$\large{ MOHR }$$ = estimated manufacturing overhead rate

$$\large{ ABP }$$ = estimated units of the allocation base for the period