Overhead does not bill itself. It has to ride on the hours that do get billed, and this is the number that says how much each of those hours is carrying.
Everything not tied to one job: office, vans, insurance, software, advertising
Overhead to recover per billable hour
$11.90/hr
Add this to your burdened labour cost before you add any profit. Pricing off the wage alone is the most common way a busy year ends up with nothing in the bank.
Anything that is not tied to one job. The van payment is overhead; the parts fitted on Tuesday are not.
Add it to your burdened labour cost. That total is your true cost per billable hour, and your price goes above it.
Yes, sharply. Fewer billable hours means each one carries more overhead.
Doing this on every job?
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