Overhead Ratio Formula To calculate the overhead ratio, divide total overhead costs by total revenue and multiply by 100 to get a percentage.

Manufacturing overhead, however, may apply to several different product lines produced within the same factory, and this needs to be allocated properly to accurately gauge the cost per unit.

How to Calculate Operating Overhead Rate. Overhead is the cost of running a company's daily business operations. This amount is fixed and does not change as the company's production level rises or ...