Job Bidding > Volume Control

How Volume Control Affects Overhead Markup. Bid Situation 2

Actual volume to date

          $739,490.00

Actual overhead to date

            $80,000.00

$80,000.00 overhead divided by

 

$739,490.00 actual volume = 11%

 

Overhead has gone from 15% of volume to 11%.

 

Material with sales tax

            $77,206.00

Labor with taxes and insurance 

$28,402.00

Job expense

              $2,863.00

Direct jobs costs

            $108,471.00

11% overhead           

              11,932.00

Contractor cost

            $120,403.00

5% profit

                6,020.00

Bid Price

            $126,423.00