In general, it is appropriate to choose direct labor hours as a basis for computing an overhead rate when the production process is labor-intensive.

How to Calculate Service Company Labor & Overhead Rates. Whether you work alone or have a team of 20 service technicians working for your small business, it's important to understand what your ...

A business overhead ratio is a measurement of the operating costs of a business compared to its income. A low overhead ratio indicates a cost-efficient business.