Overhead costs, i.e. are associated with the organization, management and maintenance of production, in calculations we take 240% of the annual wage fund.

1043.77 x 240% = 2505.05 thousand rubles.

Calculation of business expenses

In calculations, commercial expenses are 5% of production costs.

Costing

Cost calculation is compiled according to cost items per unit of production and for the entire output. Calculations are carried out in table 2.6.

Table 2.6 - Cost calculation

Expenditures	Cost amount		Cost structure, %
	per unit of production, rub.	for the entire issue, thousand rubles.
Materials
Wage
Expenses for maintenance and operation of equipment
Overheads
Production cost
Business expenses
Full cost

The structure of product costs is shown graphically in Figure 2.1.

Figure 2.1 - Product cost structure, %

The price of products is determined by the formula:

C = C + P + VAT, (2.6)

where C is the cost per unit of production,

P – profit,

VAT - value added tax.

Profit is determined based on the level of product profitability using the formula:

Rpr = Pr/S *100% (2.7)

Profitability level – 25%.

Profit per unit:

2179.29 x 25% = 544.82 rubles.

Value added tax as part of the unit price:

VAT = (Pr+S)*18% (2.8)

VAT = (544.82 + 2179.29) x 18% = 490.34 rubles.

Unit price:

C = 2179.29 + 544.82 + 490.34 = 3214.45 rubles.

Revenue from product sales is determined by the formula:

B = C * Q, (2.9)

where Q is the annual output.

Revenues from sales:

B = 3214.45 x 653.184 = 2099627.31 thousand rubles.

Profit from sales of products will be calculated using the formula:

Pr =B –S –VAT (2.10)

VAT = 490.34 x 653.184 = 320,282.24 thousand rubles.

Profit from sales:

Pr = 2099627.31 – 320282.24 – 1423475.27 = 355869.8 thousand rubles.

Income tax:

NP = 355869.8 x 20% = 71173.96 thousand rubles.

Net profit:

PE = Pr – NP (2.11)

PE = 355869.8 – 71173.96 = 284695.84 thousand rubles.

2.4. Calculation of indicators of economic efficiency of enterprise activities

Calculation of indicators of economic efficiency of the enterprise using the formulas presented in paragraph 1.3 is given in table 2.7.

Table 2.7 – Production efficiency indicators

Index	Unit	measurements
Annual production
Full cost
Unit cost
Revenue from sales
Net profit
Fixed assets
Annual payroll
Average number of employees
Overall profitability
Estimated profitability
Return on sales, %
Capital productivity
Capital intensity
Output	thousand rubles/person
Labor intensity
Level of costs per 1 ruble of commercial products

Any type of activity is associated with costs. Among them, there is a separate category - overhead costs (OOP). What it is? What applies to them? How are they calculated?

Overhead costs, what are they, what do they include?

Overhead costs are classified as indirect costs. They can be considered as an additional part of direct costs. IR includes costs that are not directly related to the cost of production or provision of services by the enterprise. The economic connection is considered: the movement of cash flow to cover the operations performed.

Direct and overhead costs cannot exist separately. In one case, the costs may be indirect. In another they become straight. For example, the amount of payment for consumed electricity by a specific site will be an indirect cost in relation to the entire production line. But it is this workshop that will bear the direct costs.

Overhead costs include in construction

The NR in construction includes articles that can be divided into the following groups:

• 1. Administrative and economic (related to the management of the entire process: remuneration of personnel not involved in construction, development of management control, payment of taxes, postal, printing, clerical, banking costs, payment for housing and communal services of administrative buildings, maintenance of official transport, etc.).
• 2. Services for construction workers (taxes from the payroll, costs of training and retraining of personnel; maintenance of living conditions; costs of labor protection and safety).
• 3. Organization of work on sites (costs of maintaining temporary structures, structures, tools, fire, security guards, costs of modernization, design, maintenance of sites in proper condition, preparation for delivery).
• 4. Other costs (advertising expenses, depreciation charges on intangible assets, loan payments).

What percentage?

The percentage of HP depends on a number of indicators:
general payroll;
average industry costs for individual works;
territorial reference (10-20%).

Standards are used to calculate overhead costs. They are installed for certain types of construction or repair, construction, and installation work. The standards are approved and periodically amended by law. Any change also takes into account the construction firm's actual costs as determined by the financial statement analysis.

Based on the intended purpose, the percentage of IR for consolidated items will be:

• 1. 43.45% will fall on administrative and business costs;
• 2. 37.32% - servicing construction workers;
• 3. 15.7% - organization of work on sites;
• 4. 3.53% - other costs.

What is included in overhead costs in the estimate?

HP in the estimate is taken into account for each individual case in accordance with the services provided or products manufactured. It is important to adhere to generally accepted mechanisms for generating documentation.

Based on the functions and scale of use, overhead costs are divided into groups:

• Standards for certain types of construction - recommended for use when drawing up estimates of investment programs and tender documentation.
• Standards for installation, repair and construction and individual construction processes are applicable for the formation of working projects or when paying for work performed.
• Individual standards for installation, construction and repair and construction enterprises are used for individual operating conditions and differ from the average values, which are fixed by the enlarged norms of NR.

MDS

The determination of standard values ​​of overhead costs for individual estimates is set out in the Methodological Guidelines in Construction (MDS). All estimated indicators form a system of price formation and rationing. The guidelines reflect provisions on how to calculate the cost of construction, the procedure for drawing up estimates, and determining the amount of standard costs.

It also provides advice on remuneration of personnel, provides a regulatory framework in contract prices and estimates, forms and systems of wages, principles for constructing and using a unified tariff schedule, etc. In construction, TEPs are also necessarily used, which are prices for performing local work.

Overhead calculation formula

Estimate- this is a type of plan when calculating various types of activities. An estimate can be drawn up to calculate both income and expenses.

Cost estimate- this is a complete calculation of expenses for the production or sale of products over a certain period of time. The estimate may include various elements: basic materials; expenses for salaries, expenses for additional materials, etc.

Salaries, taxes and indirect costs are overhead costs in the estimate and they will never be zero.

Overheads- this is that part of the cost of general work according to the estimate that includes the costs of creating the necessary general working conditions (construction, repair, adjustment and other types of work), as well as the costs of their management, organization and maintenance during the work process.

Amount of overhead costs in the estimate

Depending on the type of main activity, the planned profit, the scale of work or production, the economic department of the enterprise draws up a planned rate of overhead costs in the general estimate.

Accordingly, the amount of overhead costs directly depends on the following factors:

• expenses on wages(FOP - wage fund);
• costs associated with the system service;
• management expenses;
• related expenses with installation;
• all expenses for other types of work and related expense items.

The amount of overhead costs depends on the scale of production. And it is best to calculate the amount of overhead costs in the main functional areas.

For example, these could be the following standards:

• by main types construction;
• for certain types of construction(installation, repair, adjustment and other types of work);
• calculation of individual norms for a specific type of work

Such calculations of standards and plans will help to more accurately predict total overhead costs and, accordingly, it will be much easier to control the economic activities of the organization.

How to calculate overhead costs?

To correctly calculate overhead costs in the estimate, it is best to adhere to the market value of goods and services (market pricing policy).

The following are included in the calculation:

• price for certain types works;
• Cost of materials, machines, mechanisms;
• payment of wages etc.

As well as all associated tax and budget costs.

There are special computer budgeting programs and with their help it is very easy to calculate not only overhead costs, but also other expense items in the process of activity.

Formula for calculating overhead costs in estimates

To calculate all overhead costs, there is a very simple formula - this is the summation of all overhead cost items in the process of activity.

And it can be formulated as follows:

• Overhead = the sum of all overhead cost items + wage fund + tax deductions.

To calculate the % of overhead costs in the total estimate, use the following formula:

• K, % = total amount of overhead expenses / amount of the wage fund for main workers * 100%.

The percentage of overhead costs in the total estimate helps to more accurately determine the size of the possible estimated profit in the following periods.

Composition of overhead costs in the estimate

The overhead cost estimate may contain the following types of items:

• expenses for paying employees various economic areas;
• tax and social contributions to the state budget;
• operating costs, maintenance of equipment (necessary for a specific type of activity);
• travel expenses;
• office maintenance costs Vehicle;
• payment for necessary consulting or audit services;
• operating costs other structural units;
• various entertainment expenses;
• bank commissions;
• personnel training expenses, their training or retraining;
• expenses for maintaining necessary working conditions(sanitary and hygienic standards, certain living conditions, etc.);
• spending on safety equipment and related to the labor protection of the working personnel involved;
• various repair costs(equipment, transport);
• expenses for security of objects and others.

Depending on the type of activity, its scale, staffing levels and many other aspects, the cost estimate depends. Accordingly, the estimate may contain a certain number of items depending on the availability and necessity of certain costs in the process of activity.

Transport costs as an overhead item in the estimate

Transport costs in the estimate are one of the most important especially when planning and budgeting.

Transport costs include all expenses associated with the purchase, rental, operational maintenance, repair, purchase of fuel for all types of transport that are involved in the process of activity.

Transport costs also include all costs for the purchase, repair and maintenance of official vehicles.

When drawing up an estimate, all kinds of transportation costs must be taken into account, as well as possible fluctuations in market value (for example, the cost of gasoline, payment for operating services, repairs, etc.).

Most often, it is very difficult to determine exact transport costs, therefore, estimates taking into account transportation costs are most often drawn up for a short period of time, but also everything depends on the scale of production and, accordingly, the amount of equipment used.

Only after a certain calculation of all overhead costs (taking into account transport costs) can you roughly calculate the estimated profit of the organization.

Economic departments of companies set certain standards(plans) estimated costs and estimated profits, and based on this, in the following months (quarters, half-years, years, etc.) they reduce or increase certain cost items, taking into account specific economic indicators in the course of the company’s activities.

Absolutely all organizations deal with overhead costs. At the same time, they are practically not regulated by law. In this article, you will learn what estimated overhead costs are and what they include.

Concept

Overhead costs are additional to the main expenses of the enterprise for the management, organization and maintenance of production. They are not directly related to the main production of goods or provision of services, and are not included in the cost of materials and labor.

Overhead costs in this way - not related to the main production process - ensure the normal functioning of the company or enterprise.

Overhead costs include the cost of goods, the costs of their production and circulation, but not directly, and indirectly - in proportion to the cost of materials and raw materials, the amount of wages, and so on.

As a result, estimated overhead costs can be called associated costs that are not directly transferred to the cost of each unit of production, but are subject to distribution.

Composition of overhead costs

As a general rule, overhead costs include:

1. Current repairs of buildings and structures, equipment.
2. Salaries, training and maintenance of the administrative and managerial apparatus.
3. Expenses for servicing vehicles on the company's balance sheet.
4. Rent for office, product warehouse.
5. Costs incurred due to downtime and defective products.
6. Costs associated with the operation and maintenance of fixed assets.
7. Costs of advertising, consulting services.
8. Maintenance of the office, payment of utilities.
9. Maintenance of main production.
10. Expenses for communication services (telephone, Internet), etc.

Overhead costs can be more broadly grouped into four groups:

1. Costs of production and its organization.
2. Costs of maintaining the administrative apparatus.
3. Staff service.
4. Non-production expenses.

KEEP IN MIND

In the Tax Code of the Russian Federation, overhead costs are not designated as such, their structure is not defined. The same applies to accounting - there is no differentiation of overhead costs here. Overhead costs are fixed by law only in such areas as construction, science, and medicine. Ordinary companies establish their own list of such costs.

For example, in trade organizations such expenses usually include costs associated with packaging, storage, transportation and marketing of products.

Read also The new law in 2018 has reduced the range of transactions recognized as controlled

The amount of overhead costs is indicated in budget plans and estimates, as well as in the own budget plans of structural divisions.

How to calculate overhead costs

The company independently determines the parameters in proportion to which overhead costs will be distributed.

When planning overhead costs, several methods are usually used:

1. Determination of overhead costs in proportion to the wage fund of workers employed in the main production, as part of direct costs.

This method is suitable for organizations that have a significant number of primary production workers (primarily manual labor).

EXAMPLE

The company is engaged in cargo transportation. The wage fund is 10 million rubles. in year. In 2018, overhead costs, according to the plan, had a coefficient of 85% and, accordingly, amounted to 8.5 million rubles. That same year, the company reduced its workforce with the goal of reducing overhead costs by up to 60%.

Consequently, in 2019, while maintaining the payroll for workers in the main production, overhead costs will amount to 6 million rubles.

2. If a company's production process is largely automated, it makes more sense to distribute costs in proportion to sales volume or machine hours.

Percentage of overhead costs to direct costs- a value that allows you to determine by calculation the amount of overhead costs in the estimate (costing) and is necessary to assess the level of the final (sale) cost of products (works, services). Let's consider what this percentage could be and how it is determined.

Composition of production costs

Expenses incurred in the production of products (works, services) are divided into 2 types:

• direct ones, which can be unambiguously linked to the process of creating a specific type of product or a specific object;
• invoices, the direct connection of which with production objects is difficult to establish, but these expenses ensure the functioning of both the production itself and the enterprise as a whole.

Overhead costs, in turn, are also divided into 2 types:

• general production - ensuring the work of production units directly involved in the creation of products;
• general economic - related to ensuring the operation of the organization as a whole, including its management.

When starting its activities, the organization draws up a planned calculation (estimate) for each type of product (or object) produced, the purpose of which is:

• determination of the composition and quantitative volumes of direct costs for the production of a unit of production (one object);
• assessment of quantitative volumes of overhead costs in general and broken down by type;
• establishing the cost of direct costs, overhead costs and the total cost of producing a unit of product (object);
• determination of the selling price of a unit of production (object) taking into account planned profit and VAT.

In the process of work, this calculation will be adjusted, approaching the actual performance indicators obtained from the analysis of actual data. Accordingly, the relationship between direct and overhead costs will become closer to reality, which will make it possible in further economic calculations to focus both on the percentage of overhead costs in the total amount of production costs, and to determine the volume of overhead costs by calculating the amount of direct costs.

Structure of direct and overhead costs by item

Direct costs most often consist of the following costs:

• for materials necessary to create specific products;
• salaries of personnel directly involved in the creation of these products;
• insurance premiums accrued on the salaries of personnel creating products.

The composition of overhead costs, usually divided into 2 main types, is much wider and is characterized by significant similarity in the lists that occur for general production and general business costs. These lists typically include expenses:

• for remuneration of management and other personnel of a production or general business unit;
• insurance premiums accrued to pay for the labor of this personnel;
• material support for the current work of departments (low-value equipment, office and household supplies, consumables for low-value equipment);
• depreciation of used fixed assets;
• maintenance and operation of fixed assets, including their routine maintenance, provision of necessary resources (fuel and lubricants, replacement parts, electricity, water, heat, gas), current and major repairs;
• property rental;
• property and personnel insurance;
• obtaining permits;
• ensuring the quality of products;
• labor protection;
• information, consulting and legal support;
• business trips;
• entertainment events;
• personnel selection.

Due to the impossibility of direct correlation with specific types of products created (objects), overhead costs are allocated. The organization chooses the basis for this distribution independently. This may be one type of direct costs (materials or labor) or their total amount.

Calculation of the percentage of overhead costs from direct costs

For questions of forecasting and decision-making on prices, such an indicator as the ratio of direct costs and overhead costs is important, more precisely, the value by which, by multiplying the existing direct costs (or the amount of one of their types), you can get the amount of overhead costs related to these direct costs. The calculation of this ratio itself is quite simple: divide the amount of overhead costs by the amount of direct costs or by the amount of one of the types of direct costs. To express the ratio as a percentage, the quotient of the division is multiplied by 100%.

The first such calculation is made according to the planned calculation (estimate). In the future, its results will be refined as evidence accumulates. To determine a stable value for the ratio of direct costs and overhead costs, ensuring a high level of reliability of forecast calculations, it is necessary to process actual data for a sufficiently long period.

Rationing of overhead costs

The ratio of direct costs and overhead costs is not established by law. Each organization is guided by the characteristics of its own production process and its own data to calculate this ratio.

However, for a number of industries there are consolidated overhead cost standards, which organizations should be guided by at least when drawing up planned calculations with the right to further clarify the ratio. It is recommended to use such standards when estimating costs:

• in construction (Decree of the State Construction Committee of Russia dated March 5, 2004 No. 15/1, order of the Ministry of Regional Development of the Russian Federation dated November 16, 2010 No. 497, letters of the Ministry of Construction of the Russian Federation dated November 13, 1996 No. VB-26/12-367, State Construction Committee of the Russian Federation dated October 18, 1993 No. 12- 248, Rosstroya dated 07/08/2004 No. AP-3462/06);
• during scheduled preventative repairs of industrial buildings and structures (Resolution of the USSR State Construction Committee dated December 29, 1973 No. 279);
• for conducting safety reviews of facilities and activities in the field of nuclear energy (Rostechnadzor order No. 114 dated March 24, 2014);
• during the restoration, conservation and repair of historical and cultural monuments (order of the USSR Ministry of Culture dated January 25, 1984 No. 35);
• for conducting an examination of cultural property (order of the Ministry of Culture of Russia dated January 14, 2003 No. 22);
• in the chemical industry (order of the Ministry of Industry and Science of the Russian Federation dated January 4, 2003 No. 2);
• during the extraction and enrichment of coal or shale (instructions approved by the Ministry of Fuel and Energy of the Russian Federation on December 25, 1996);
• for carrying out sanitary and epidemiological examinations and assessments (Order of Rospotrebnadzor dated September 17, 2012 No. 907).

In most of these documents, it is recommended that the percentage of overhead costs be determined from the wage fund, which is part of direct costs. Moreover, it can be installed differently for different types and conditions of work.

Results

Establishing the percentage of overhead costs is important for determining product sales prices and making economic forecasts. The first such calculation is based on planned data. In the future, the cost ratio is refined as actual figures are received. The proportion between direct costs and overhead costs can be established based on different indicators of direct costs (their total amount, the total volume of any type of costs, the amount of costs generated for a specific object, its part or place of work), which provides additional material for analysis and clarification of estimates (calculations).