Manufacturing Overhead per kg
Overhead cost per kilogram and per tonne of output from period overhead and production.
Inputs
per month
per month
per month
per month
kg per month
Results
- Overhead per kg
- 0.2222 per kg
- Overhead per tonne
- 222.22 per t
- Total overhead
- 40,000 per month
Formula
Overhead per kg = Total period overhead ÷ kg produced
Assumptions & limits
- Direct material and direct labour are excluded.
- Use good output kg to absorb scrap.
Worked example
40,000 ÷ 180,000 = 0.2222 per kg = 222.22 per tonne.