Overhead/Expense Worksheet
The following worksheet is for members and business owner to develope good universal
business practices. Money expended in the promotion of any business must be recaptured
through the sale of your product and its pricing. It offers the following data. Fill
in the blanks to get teh cost to run your business for each operating hour. This cost
added to direct labor should be your minimum shop rate. Since profits on raw materials
are widely variable with each job, it is ignored in this cost analysis.
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STEP 1. Insert your cost per year At 40 operating hours per week,
2 weeks paidvacation and 5 paid holidays, you actually are open for business 49 weeks
or 1960 hours per year. (If you are open 6 days a week, compute those hours.)
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Costs Exluding Labor
Mortgage/Rent _______________
Utilities-Heat, water, etc. _______________
Office Supplies-Postage, etc. _______________
Bank Loans (not mortgage) _______________
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STEP 2. Divide by 1960 hours
(or your calculated hours)
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Insurance _______________
Worker's Compensation _______________
Accounting Fees _______________
Association Dues (business) _______________
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| Labor |
Travel Expenses'/trade shows _______________
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Employee wages/salary _______________
Employer's contribution for FICA (Social Security) _______________
Health Insureance _______________
Worker's Compensation _______________
Vacation Pay _______________
Holiday pay _______________
Jury duty/military reserve _______________
Sick pay _______________
Daily coffee break _______________
Uniforms/aprons _______________
Unlisted expenses _______________
15% unproductive labor between jobs _______________
Yearly bonuses _______________
Commissions over labor _______________
Total Labor Per year _______________
Divided by calculated hours _______________
Total Labor per hour _______________
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Fed.,state, local bus. taxes _______________
Owners: Salary _______________
Retirement funding _______________
Health Insurance _______________
Personal Medical _______________
Saving funds: tool Replacement _______________
Bad Debts _______________
Insurance, benefits _______________
Travel expenses _______________
Business vehicles/payments _______________
Depreciation _______________
Insurance _______________
Maintenance/repairs _______________
Gas, oil, wash, tags _______________
Advertising-all Medias _______________
Contributions/Donations _______________
Unlisted specific expenses _______________
Total yearly cost less Labor _______________
Divided by Calculated hours _______________
Total hourly cost less Labor _______________
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Now add your hourly shop costs to your
hourly labor charge and you will have the bottom line figure you need to produce in order
for your business to 'just' survive and retain a living wage.
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Hourly shop Costs per Hour _______________
Hourly Labor Costs per Hour + _______________
TOTAL Hourly Work Charge = _______________
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WARNING:
The calculations you have assembled through this data
sheet will indicate only your absolute cost of your business operation. It allows
you your wages and the return of your business expenditures, to maintain your business.
It is now imparative that you add at least 7% 12 % profit margin onto your minimum
hourly shop rate to achieve your proper return on your investment. This added
percentage is a separate margin from whatever other margins you may receive from
fabric, raw materials, or other merchandise your business may offer.
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