Business
Overhead absorption rate Calculator
Allocate overhead by productive hours or units and estimate the burden for a job. This free overhead absorption rate calculator shows the calculation and its assumptions so you can compare your own figures.
Your results
Allocate overhead by productive hours or units and estimate the burden for a job.
Calculated outcomes
- Job Overhead By Hours
- €750.00
- Job Overhead By Units
- €600.00
Assumptions and estimates
- Hour-based and unit-based absorption are alternative allocations; do not add them together. Use realistic productive capacity and a consistent cost period.
- Method: Hourly overhead = annual overhead ÷ productive hours; unit overhead = annual overhead ÷ units produced.
- Hour-based and unit-based allocations are alternatives, rather than costs to add together. Use achievable production capacity.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the overhead absorption rate calculation works
Hourly overhead = annual overhead ÷ productive hours; unit overhead = annual overhead ÷ units produced.
Hour-based and unit-based allocations are alternatives, rather than costs to add together. Use achievable production capacity.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review overhead per productive hour and overhead per unit, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Annual overhead (€)
- 150000
- Annual productive hours
- 6000
- Annual units produced
- 25000
- Job productive hours
- 30
- Job units
- 100
- Overhead Per Productive Hour
- €25.00
- Overhead Per Unit
- €6.00