Monthly Archives: January 2023

The Difference Between Fixed Expenses and Variable Expenses

To optimize your fixed expenses, consider exploring ways to reduce costs without compromising the quality of your products or services. This could involve negotiating better deals with suppliers, implementing energy-saving practices, or exploring more affordable leasing options. By constantly evaluating and improving your expense management, you can enhance your business’s profitability and ensure long-term success. […]

What Predetermined Overhead Rate Is Formula and Sample

This predetermined rate was based on a cost formula that estimated $\$ 257,400$ of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor-hours. The most common allocation base used in manufacturing is machine hours, direct labor hours, or direct materials cost. For example, if the allocation base is machine hours, estimate […]