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.
- "The Construction MBA" (McGraw - Hill, 2012, 484 pages) by Matt Stevens
- "Fails Management Institute (FMI)at http://www.fminet.com
- "See http://www.bizdrsolution.com/c105/c161/Dual-Overhead-Calculation-p2717.html