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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