In practical work, it happens that a problem arises with the calculation of overhead costs. This is due to the lack of clear regulation of the pricing procedure in regulatory documents. Each industry has its own specifics, which should be taken into account when calculating and distributing this type of expenses.
Instructions
Step 1
Before calculating the overhead, review the industry guidelines for allocating these costs across different products. The use of one method or another significantly affects the value of the cost price in the reporting period, and, consequently, the amount of taxable profit. The organization independently determines the parameters in proportion to which the distribution of costs will occur. Choose the best method based on the specifics of your business.
Step 2
For industries using manual labor, it is advisable to apply a distribution proportional to the cost of wages of workers. By the volume of sales, you can distribute costs in organizations where production has a high degree of automation. Also for such organizations, the distribution method is proportional to machine-hours. In cases where the amount of overhead costs is much less than direct material costs, it makes sense to use the ratio of direct costs for the release of one product to the total amount as a basis for their distribution.
Step 3
In large enterprises that produce a wide range of goods and have a complex infrastructure, it is permissible to use combined methods.
Step 4
Before calculating the overhead, determine the optimal distribution base for each variety. For example, commercial expenses can be distributed in proportion to material costs, and general business expenses - in proportion to the wages fund.
Step 5
In order to plan overhead costs, calculate the total cost of the business of the enterprise. Then calculate the amount of overheads to be included in the unit cost of goods produced for each item. Their value for the planned cost is determined based on the norms established by the state for specific types of expenses; the norms contained in the accounting policy of the organization, which are calculated on the basis of actual data of past periods and their planned changes. The period for making settlements is determined by the organization independently.
