Help! How To Determine Overhead Costs!

Business By StaceFaceCakes Updated 20 Jan 2013 , 5:22pm by jason_kraft

StaceFaceCakes Posted 20 Jan 2013 , 4:27am
post #1 of 4

Hi everyone! I have calculated my recipe costs but need to determine a figure for overhead costs. How would everyone recommend calculating this number?

Thanks so much!

3 replies
jason_kraft Posted 20 Jan 2013 , 4:57am
post #2 of 4

AAdd up the annual costs for everything you spend on your business that's not ingredients or labor, then divide by the total number of orders per year. The resulting number is the overhead cost component of each order.

StaceFaceCakes Posted 20 Jan 2013 , 5:19am
post #3 of 4

Thank you! This is my first year, so maybe I should estimate?

jason_kraft Posted 20 Jan 2013 , 5:22pm
post #4 of 4

AYou should already have a pretty good idea of what your overhead costs are (since they are typically fixed), but you will need to estimate your sales volume based on the market research you have done in your business plan.

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