Ranch House Overhead Walkthrough

A construction company's product is completed construction projects, but the cost to run the business side of the company must also be accounted for. the cost of advertising, office staff and equipment, etc. (ie. costs that are not directly related to a construction project) are some of these cost categories that fall under overhead. Overhead is the costs required to operate a business.

What to Enter in the Overhead Tab

The company accountant has given you the following numbers to enter in the Overhead tab of the Estimating Workbook based on a forecast completed earlier.

	January	February	March	April	May	June
Advertising	$500	$250	$200	$100	$100	$100
Office Personnel	Leave Alone
Computers	$2000	$100	$0	$0	$0	$0
Dues and Subscriptions	$50	$50	$50	$50	$50	$50
Electricity for Office	$150	$150	$150	$150	$150	$150
Heat for Office (Gas)	$120	$100	$80	$60	$30	$20
General Insurance	$1450	$1450	$1450	$1450	$1450	$1450
Health Insurance	$4150	$4150	$4150	$4150	$4150	$4150
Meals and Entertainment	$300	$300	$300	$300	$300	$300
Office Supplies	$250	$250	$250	$250	$250	$250
Officer Salaries	$4000	$4000	$4000	$4000	$4000	$4000
Postage	$25	$25	$25	$25	$25	$25
Professional Fees	$1590	$100	0	0	0	0
Rental Expenses	$500	$500	$500	$500	$500	$500
Telephone	$250	$250	$250	$250	$250	$250
Tools and Equipment	Leave Alone
Travel	$150	$150	$150	$150	$150	$150
Vehicles	$550	$550	$550	$550	$550	$550

IMPORTANT: Enter Estimated Yearly Gross Income

Enter $1,600,000 in the cell for Estimated Yearly Gross Income. Failure to do so prevent you from calculating the correct percentage for Overhead as a Percentage of Income.