Job Management Job Costing Overhead Costs
Overhead Costs
When evaluating the costs on a Job to determine if your company was successful in completing the job as estimated, the elements which drive the actual costs need to be in line with how the job was quoted so that a true comparison can be made for each major cost element of the Job.
SedonaOffice breaks down the estimated and actual costs into five cost elements; Materials (parts), Labor, Overhead, Other (miscellaneous expenses), and Commissions. Material, Commissions and Miscellaneous Expenses usually are not a problem in comparing estimates to actual costs. The area that is usually problematic is Labor and Overhead. In order to accurately compare Labor and Overhead actual costs to the estimated costs, the setup in SedonaOffice to apply actual amounts to a Job need to be structured in the same manner as they are being quoted. If your sales department is quoting labor using a burdened labor rate, then the labor rates set up on your Installer records need to be setup with the same rates.
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