QCQ Configuration
      Back to home
      1. LearnCQ
      2. QuoteCQ
      3. QCQ Configuration

      QuoteCQ: How to Calculate Overhead

      On the Summary tab, you can view and modify your Overhead Costs per assembly based on your configured cost pools.

      Note: Overhead values are based on Labor and Materials, not the Summary calculations.

      SG&A Calculations

      SG&A is calculated by [(Material sub-total + Labor sub-total) * Activity Rate]. Here's an example. In configuration, I have an Activity Rate of $0.0125 for Sales & Marketing per every $1 from Material and Labor costs:

      If my material costs are $78.200440 and labor costs are $24.192407, my calculation for SG&A > Sales & Marketing would be: [($78.200440+$24.192407) * 0.0125] = $1.27991059.

      Labor Overhead

      Labor Overhead is calculated by Direct Labor Hours * Activity Rate. For example, my rent has a cost pool of $2 per labor hour:

      If my Labor Hours were 1.232630, my calculation would be $2 * 1.232630 = $2.46526.