The total estimated variable manufacturing overhead/total estimated amount of the allocation base is the calculation to compute the Variable Manufacturing Overhead Rate.
Variable Manufacturing is the expenses of running a firm that varies with the extent of enterprise or manufacturing interest. As production output will increase or decrease, variable overhead actions are in tandem.
Variable Manufacturing is the manufacturing prices that vary kind of on the subject of modifications in production output. The idea is used to model the destiny expenditure degrees of a commercial enterprise, in addition to determining the lowest possible rate at which a product should be bought.
To calculate Variable Manufacturing, multiply what it prices to make one unit of your product by means of the full number of merchandise you have created. This system looks as if this: overall Variable costs = fee in step with Unit x overall quantity of units.
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