Calculate Overhead Rates

To calculate overhead rates you must know the total cost of all expenses.There are some exceptions for direct labor, materials and cost to outside contractors. Once you have determined the total cost, then you will divide the total number by your cost of direct project labor. The sum total you recieve is known as your Overhead rate. This is the format to calculate the overhead rates.
Copyright © 2013 Dictionary.com, LLC. All rights reserved.