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Predetermined Overhead Rate

on . Posted in Project Management 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.

 

Predetermined Overhead Rate Formula
\(\large{ POHR =  \frac{ MOHR }{ ABP }  }\) 
Symbol
\(\large{ POHR }\) = predetermined overhead rate
\(\large{ MOHR }\) = estimated manufacturing overhead rate
\(\large{ ABP }\) = estimated units of the allocation base for the period

 

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