Overhead Rate

on . Posted in Project Management Engineering

Overhead rate, abbreviated as OR, is the proportion of a company’s revenue allocated to overhead costs, directly affecting its profit margins.

 

Overhead Rate Formula

\(\large{ OR =  \frac{ OC }{ R }  }\)
Symbol
\(\large{ OR }\) = overhead rate
\(\large{ OC }\) = overhead costs
\(\large{ R }\) = revenue

 

Piping Designer Logo 1