Greg,
Mike Holt's website has some books on estimating and applying overhead to jobs.
He states that there are two methods of applying overhead to an estimate.
The percent method and the rate-per-hour method.
Example for the first method:
Your prime cost is $7,000 and your overhead is 25% of sales.
Prime cost $7,000 75%
Overhead ($7,000X33%) +$2,310 +25%
Estimated cost =$9,310 100%
The second method is the prefered method.
The rate per man-hour is calculated by dividing the overhead dollars for at least the past six months by the field man-hours for the past six months.
The Rate-Per-Hour Method is the one I use.
Mike Holt's estimating book has some practice estimates in it that you can work through.
http://mikeholt.com/productcategory...le=Electrical%20Estimating&year=2002 [This message has been edited by A-Line (edited 01-29-2005).]
