Overhead Calculation

Let's answer the question, how is overhead calculated.

You may see this referred to as overhead labor.

Your current overhead factor is stamped on each new time slip when it is created. It is then multiplied by the Direct Labor to obtain your overhead cost.

Direct Labor x Overhead Factor = Overhead Cost

Time Slip Overhead = Direct Labor x Overhead Factor
Phase Overhead = Sum of linked time slip overhead costs
Project Overhead = Sum of Phase Overhead

Overhead Factor

Every firm has overhead costs that need to be allocated to its projects. This is accomplished with an overhead factor.

Calculating Your Overhead Factor

Your overhead factor is a key value if you want to know your true project costs.

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