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

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