Business Considerations > Burden/Labor Rates
  PPT
Burden/Labor Rates
Cost accountants generally maintain burden/labor rates. Typically, they are considered the variable portion of overhead related directly to production hours.
In contrast, overhead is considered a fixed cost and is applied to inventory at the time of work order or purchase order receipt.
Machine Burden Rate
Labor Burden Rate
Note: If a Labor Burden Rate is also entered, it is added to Total Burden.