Variable Material Overhead Rate
Enter the variable material overhead rate you want to use for applying overhead costs to material costs.
For example, if you apply a 2% rate, the value you must enter in this field is 0.020.
Variable costs fluctuate according to volume changes. Manufacturing supplies and freight charges are examples of variable costs. These costs are applied to material as you issue the materials.
Note: Material overhead rates are used when applying overhead to material
costs, as opposed to labor costs. Fixed and variable labor overhead rates can
be entered on the
Department form. The system applies material, labor,
and machine overhead rates according to the criteria entered in the
Overhead Basis field on the
Work Center - Scheduling form.