Explain what overheads are. How are overheads incorporated into the net estimated cost? Provide five examples

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Question 14

Answer the following questions about principles underlying overhead costs in building and construction projects.

  1. Explain what overheads are.
  2. How are overheads incorporated into the net estimated cost?
  3. Provide five examples of overheads that must be incorporated into the net estimated cost of the job.
  4. How is the percentage of overheads established?
  5. Calculate the overhead markup percentage for the following:
    Note that 20xx refers to the previous year.
Turnover for Jan 20xx $1,920,000.00
Overhead for Jan 20xx $146 ,000.00
Overheads markup percentage


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