Job Bidding > Overhead

What volume of work is needed to pay for overhead?

• Known overhead for year $120,000.00

• Present overhead markup 15%

$120,000.00

.15 = $800,000.00 of material and labor.

• Apply overhead of 15%.

$800,000.00 material and labor

120,000.00 annual overhead

$920,000.00 cost of work is needed to pay for overhead