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MariaSoledadG
QuickBooks Team

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Let me provide some information about overhead charges so you'll be guided on what to do, shannonb123.

 

Overhead costs and operating expenses should be tracked separately for a number of reasons. Calculating overhead costs is done by adding up all overhead costs, breaking them down by month, and dividing the total by monthly sales. To sum up, I've provided the formula below:

(Overhead ÷ monthly sales) x 100 = overhead percentage

 

For the overhead allocation rate:

Total overhead ÷ total labor hours = overhead allocation rate

 

Also managing job costing depends on your business plan and customers. But there's no single right way how to do it. To give your more information, read this article for more details: What Are Pay Rates, Cost Rates, And Billable Rate.

 

Additionally, QuickBooks Online (QBO) offers a variety of reports that will tell the aspects of your business. You'll want to customize them to make sure you'll get the information you need. An article is added for more information: Customize Report In QuickBooks Online.

 

Fill me in if you need additional assistance with overhead charges. I'll be here to help.

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