Overhead Allocation Presented by Melissa Wood

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Presentation Contents Inset your subtitle here. This is a good space for a short subtitle 1 Using Actual Burden Who we Are? Mission & Vision Our Business Objectives Our Business Plans Marketing Plans Analytics Remained Subjects

Choosing a Method Using Actual Burden Using Actual Burden with Extra Burden General Ledger Method Job Costing Method Combination of Methods

What is Actual Labor Burden Employer Share of FICA Federal and State Unemployment Workers' Compensation Employer-Paid Benefits from Unions Accrued Fringe Benefits (Heath & 401K) Contributions

Items Considered Extra Burden Fuel General Liability Insurance Vehicle Insurance and Maintenance Costs Licenses and Registration Blueprints and Estimating Costs Tools and Small Equipment Drug and Background Check Fees Shop Costs Field Phones and Mobile Devices

Burden Analysis Review Current Actual Burden Setup Set Extra Burden G/L Accounts to Indirect Expenses Analyze your Income Statement for Extra Burden % Adding new G/L Accounts to Track Extra Burden Setting your Extra Burden Sequence (P/R Depts) Selecting Earn Codes on which to Calculate Burden Adding Higher Burden to More Costly Jobs Execute When Posting Payroll Over/Under Burdening Spot Check

This company has under – burdened by about 15% of labor

General Ledger Method Conceptually Similar to the Extra Burden Method Setup is in the G/L Rather than Payroll Great Solution if You are Not Using Payroll Module Setup in General Chart of Accounts Consider Basis, % to Allocate and Weight Factor Make sure G/L Control Files are Set Up Executing Using the Overhead Allocation Report Con – Does Not Work with Divisions Con – You Need to Remember to Post it

Job Cost Method Conceptually Similar to the Other Methods Setup is in the Job Cost Control File Basis is by Cost Code or Cost Class Allocation by Amount Per Hour or % Make Sure J/C Control Files are Set Up Execute Using the J/C Overhead Allocation Report Use Caution to Keep G/L & Job Cost in Balance Con – You Need to Remember to Post It

Thanks for Attending Overhead Allocation