[Anonymous]

Hello everyone,

I am getting confused with all these different ways to calculate overhead.

From what I understand:

Traditional costing -> Applied OH = Actual cost driver x OH rate (which is = budgeted OH cost (fixed + variable) / estimated driver)

Activity based costing -> Applied OH = same as traditional but allocated among various cost drivers for each activity?

Standard costing -> Applied OH = Standard cost driver x standard OH rate.

How would you calculate the standard OH rate? (would this rate be the same # under traditional costing?)

Thanks for the help!