Home → EstiMate Version 1 → Financials: Hard Numbers Etc. → Overhead worksheet calculations don?t match up?

2.19. Overhead worksheet calculations don?t match up?

When I view the help file to find out about the overhead worksheet the hourly rate doesn't seem to make sense based on the entries on the worksheet. Am I figuring something wrong?

Here's how it works:

The sum of the monthly figures in the overhead worksheet is $12,800.
$12,800 x 12 months = $153,600 per year.
At 8 hours per day, 5 days per week, 48 weeks per year this shop bills a
total of 1920 hours per year (8 x 5 x 48 = 1920).
$153,600 / 1920 hours = $80 per hour base rate (before profit).

As the overhead worksheet specifies, the percentage you see will be "tacked
on" to your necessary overhead. This means that 20% of the $80 figure, or
$16, will be "tacked on," bringing the hourly rate to a total of $96.