Applied Overhead

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Applied Overhead

In cost accounting, the expense of each department in a company, allocated according to a predetermined formula. For example, a company may apply 60% of its overhead to R&D and 40% to its sales department. These percentages may or may not be based on the actual costs each department incurs.
References in periodicals archive ?
The industry team has also absorbed overhead costs of about $240 million that would have been passed onto the government under conventional NASA contracts, officials said.
Finally, column (5) shows the absorbed overheads as $1600, i.