Factory Overhead Rate:

(i) Direct Material Cost Method =Amount of Factory Overheads ÷ Cost of Direct materials used x 100

(ii) Direct Labour Cost Method = Amount of Factory Overheads ÷ Cost of direct labour x 100

(iii) Prime Cost Method = Amount of Factory overheads ÷ Prime cost x 100

(iv)

(i) Machine SHour Rate Method = Amount of Factory overheads ÷ Machine Hours

(ii) Labour Hour Rate Method = Amount of Factory overheads ÷ Total Number of direct labour hours

Office Overhead Rates:

(i) As a Percentage of Factory Cost = Total Administration Overheads ÷ Total factory cost x 100

(ii) As a Percentage to Factory Overheads = Total Administration Overheads ÷ Total Factory Overheads* x 100

(iii) As a Percentage to Sales = Administration Overheads ÷ Total sales x 100

(iv) As a Percentage of Conversion Cost = Total Administration Overheads ÷ Total Conversion Cost x 100

(v) As a Percentage of Gross Profit = Total Administration Overheads ÷ Gross Profit x 100

Selling Overhead Rate:

(i) As a Rate Per Article = Total selling & Distribution Overheads ÷ Number of Products sold

(ii) As a Percentage of Selling Price = Total Selling & Distribution Overheads ÷ Total Sales x 100

(iii) As a Percentage of Works Cost = Total Selling & Distribution Overheads ÷ Total Works Cost x 100