Rate Based Overhead Method

Set up a rate based overhead method to calculate overhead using a rate applied to operational measures recorded for your joint ventures.

Only operational measures recorded as a number, not as a percent, are used in the calculation. You can calculate overhead based on operational measures recorded for a particular period, from the beginning of a fiscal year or calendar year to a period, or from the inception date of a joint venture to a period.

You can also use a sliding scale for this type of overhead calculation. A sliding scale enables you to apply different rates to different portions of operational measures for the overhead calculation.