To arrive at the total activity-based overhead cost allocation, simply add up the assigned overhead cost from each overhead activity: $2,500 + $1,600 + $1,000 = $5,100.

A company’s overhead rate is its cost not of producing a product or service, but of simply staying in business, divided by some other metric (or allocation measure).

CU Boulder’s Federally-Negotiated Indirect Cost (F&A) Rate Agreement includes four types of activities. The activity types of organized research, instruction, and other sponsored activities are ...