Overhead Rate
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 |