Predetermined overhead rate, abbreviated as POHR, is the allocation rate that is assigned to products or job orders at the beginning of a project.
Predetermined Overhead Rate Formula |
| \( POHR \;=\; \dfrac{ MOHR }{ ABP } \) |
| Symbol |
| \( POHR \) = predetermined overhead rate |
| \( MOHR \) = estimated manufacturing overhead rate |
| \( ABP \) = estimated units of the allocation base for the period |
