Does anyone know what sorts of overhead rates US companies are assuming for engineers? I've heard numbers like 2x, namely total cost of 3x salary.
overhead
Oct 08, 2024
Last reply: 1 year ago
4 Replies
For big defense contractors, that is about right.
Joe
A contact at Textron says 3 to 3.5.
Also in the range.
Joe
The only overhead I ever heard discussed seriously was the net cost of production labor - this loaded the entire costs of the business, R&D, pointy heads and plant on a meat puppet's hourly wage.
Hence minutes and seconds of production time could be estimated in terms of dollars and cents, on any proposed new product.
Getting rid of hourly paid workers had a piddling influence on the production cost of real goods. Off-shore or subcontracted operations could also suffered from this type of thinking.
So, go figure . . . .
RL
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