Manufacturing Overhead Calculator


The overhead calculator below is provided by Prime Estimating and Software Services, LLC - providers of estimating software for AWI commercial architectural woodwork, casework, and store fixtures. 2011 Prime Estimating & Software Services

This calculator is provided as a reference tool only. All business decisions should ultimately be made with the assistance and advice of an accredited business planner or accountant.

A.) General Overhead:
  • Insurances
$
  • Shop Supplies
$
  • Small Tools
$
  • Taxes/Licenses
$
  • Travel
$
  • Utilities
$
  • Miscellaneous
$
 
B.) Selling, General & Administrative Expenses:
  • Advertising
$
  • Automotive
$
  • Bad Debt
$
  • Charitable Donations
$
  • Computers/Internet
$
  • Depreciation Expense
$
  • Dues & Subscriptions
$
  • Interest/Bank Charges
$
  • Office Supplies/Postage
$
  • Professional Fees
$
  • Rent Expense
$
  • Telephone
$
  • Travel
$
  • Miscellaneous
$
 
C.) Salaries/Benefits:
  • Estimating
$
  • Executive
$
  • Office
$
  • Benefits/Taxes
$
 
D.) Selling/delivery:
  • Repairs & Maintenance
$
  • Fuel/Oil
$
  • Miscellaneous
$
 
E.) Total Overhead Cost:
  • [A +B +C +D]
$
 
F.) Less Overhead assigned to Material Cost:
  • Material Cost Overhead:
$
 
G.) Total Overhead Cost assigned to Direct Labor:
  • [E minus F]
$
 
  Scenario 1 Scenario 2 Scenario 3
H.) Estimated Hours of direct labor per year:      
 
I.) Recover applicable overhead cost from direct labor: [G divided by H]  %  %  %
 
J.) Blended Rate including benefits & taxes: $ $ $
 
K.) Overhead Cost for direct labor:
[I * J]
$ $ $
 
 
L.) Total Labor Cost with overhead, taxes, benefits: $ $ $
 
 
The overhead calculator above is provided by Prime Estimating and Software Services, LLC - providers of estimating software for AWI commercial architectural woodwork, casework, and store fixtures. 2011 Prime Estimating & Software Services

Notes:

  1. Typically % is between 75% and 125%. Please check with your accounting professional to confirm values and %.
  2. If yearly hours that differ from estimated direct labor hours shown in Scenario #1-2-3:
    • below hours will result in a loss or reduction in profit
    • hours above will result in extra profit subject to some slight
      overhead costs
  3. Overhead assigned to Material Cost, calculate Overhead divides by total material purchases

Today's Sponsors
  • Simantech
    New & Used Machinery, Supplies, Tooling, Parts, and Abrasive Products
  • Wood Doctor's Rx, LLC
    Wood Processing Seminars, Kiln Operators Seminar & Training, and Advanced Drying Evaluation & Training
  • RT Machine Co.
    Stocking Distributor of New and Used Woodworking Machinery
  • Template Services
    Professional Moulding Design and Template Making Service
  • TradeSoft
    Seamless Management Software to Improve Estimating, Job Costing, Scheduling, Purchasing, Shipping, and Shop Floor Data Collection
  • Rangate
    Woodworking Machinery, Supplies and Knowledge
  • Western Dovetail
    Custom Made Dovetail Drawers
  • Scarlett Machinery Inc.
    New and Used CNC Routers and Used Woodworking Machinery, for Operations Ranging From Small Woodworking Shops to Large Progressive Manufacturing Plants
  • Elias Woodwork & Manufacturing
    Solid Wood Cabinet Doors, Furniture, Dovetail Drawers, Mouldings, and Related Items
  • Baker Products
    Industrial Woodworking Machines, Wooden Pallet Manufacturing Machines, & Portable Sawmills
  • Carter Products
    Band Saw Guides, Blades, Wheels, Tires, Line Lasers and 2D Projectors, Wide Belt Sanding Accessories, Vacuum Holding Systems and More
  • Salice America Inc.
    Leading Manufacturer of Functional Hardware for Cabinets and Furniture, Including Concealed Hinges, Drawer Slides, Lift Systems, Coplanar Sliding Door Hardware
  • TradeJobPlacement.com
    Individualized Placement Services, Specializing in Millwork Design Engineers

Become a Sponsor today!