Staples - Johnstown 590 Galleria Dr, Johnstown PA 15904 Phone Number: (814) 262-9096
The distribution of manufacturing overhead costs to individual product unit, or production batches generally, requires a base or a cost driver, to which reference a rate, known as material burden rate applies. Material burden is the amount of manufacturing overhead costs that a unit of the base carries.
For example, a worker who earns $20 per hour with a 50 percent burden expense is bid out at $30 per hour. When all burden costs are paid as part of your overhead costs, your job cost accounting doesnât give you a clear picture of how well your job did upon completion. The same is true with your field equipment.