Dual overhead rate

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Dual Overhead Rate Recovery is used in construction contracting as a costing equation for bidding a project, costing an existing project or allocating corporate overhead to multiple divisions of construction work. It relies on banking information and regression analysis.

It produces two rates, 1) Labor / Equipment Rate 2) Material / Subcontract Rate. This equation produces a percentage allocation of each class of cost. This is the cost of overhead to manage.

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