Overhead is the expenses for running a business. Such as electric, rent, payroll, etc. They are usually termed overhead expenses.

Blanket overhead rate is the computation of a single overhead rate for one whole factory. Overhead rate is the percentage you get when comparing total overhead expenses to total expenses.

Using direct labor hours:

Overhead rate = Total Overhead Expenses /Direct labor hours

Using Machine hours:

Overhead rate = Total Overhead Expenses /Machine hours

OH Expenses are overhead expenses for a business - such as rent, payroll, telephone etc.

overhead