Business FinancesQuestion 315 of 1605
A contractor projects $1,000,000 in revenue and budgets overhead at 18% of revenue. How much should be budgeted for overhead?
a.$18,000
b.$100,000
c.$180,000
d.$820,000
Explanation
Budgeted overhead = $1,000,000 × 18% = $180,000. Comparing actual overhead to this budget helps the contractor control indirect costs.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)