variable overhead rateSolutionThe variable overhead rate has

variable overhead rate

Solution

The variable overhead rate has many defintions depending on the relation with the context

For the labor or wage employees, the extra variable amount that they will be getting for working per hour on the top of regular working hours payment is defined as the variable overhead rate. Ex - when the demand is very high for some particular factory, then they ask labors to do overtime and the overtime rate is usually more than their regular wages per hour

Variable overhead in terms of industry refers to the manufacturing cost that varies with the small changes in the production output.

Examples of the above can be

a) Utilities of the Particular Equipment

b) Supply of Production Raw Material