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Break the P&L down by (departments) otherwise you'll be seeing an average overall.
After you account for activity by department, find your costs and sales production by the hour ... to see the returns per hour, direct costs, and profits by actual work function. Allocate the production hours by department also and divide those hours into all income and expense categories to (see) your actuals ... go further by comparing these actuals to the numbers you used to prepare job bids for 2002.
Overhead over or under absorbed for 2002? ... no problem, doublecheck what OH rate per hour you used throughout 2002 ... was that rate comparable to the actual OH expense on your P&L? Did you forecast enough production hours for 2002 and what about 2003? use the experienced OH costs for 2002, adjust them for anticipated costs increases and you'll be all set with a brand new OH per hour rate for bidding jobs in 2003.
