What_is_an_overhead_

What is an overhead?

An overhead is the cost related to providing and maintaining a working environment. Use the options in Overheads to calculate an additional amount, rate, or percent based on the

  • Amount

  • Bill rate per labor hour

  • Percent of equipment dollars, labor and benefit dollars, or labor dollars

  • Percent of overheads

  • Rate per equipment hour or labor hour

 

Example

City XYZ uses an equipment overhead that bills an additional $2.45 per hour for each hour the equipment is used. The amount generated by the overhead is applied equally to the construction, maintenance, and cost of removal for the related job in Project Accounting. When Jane sets up the overhead record in Timekeeping, it looks like this

 

 

 

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