Overhead Expenses

[Phil Nilsson]

General overhead expenses cost you whether you have business activity or not. Split these out separately and come up with an estimate of the total production hours you expect to have for the entire working season. Yes, as you go along during the year you may have an increase or a decrease to production hours as new work comes in, but it's the best number you have at the time, so work with that number. As more than projected production hours go up, general overhead costs per hour go down, and vice versa.