Annual Direct Overhead

Annual direct overhead is the sum of costs in five categories:

Direct Overhead Cost = Annual Depreciation +

Annual Maintenance + Energy to Run Machine + Annual Supplies + Imputed Interest

The categories are discussed in the following sections:

 Annual Depreciation

 Annual MaintenanceAnnual Maintenance

 Energy to Run Machine

 Annual Supplies

 Imputed Interest

By default, facilities cost is not included in direct overhead cost, but VPE administrators can override the default and specify that such costs are to be counted as part of direct overhead by setting the VPE variable Add Facility Cost to Direct Overhead to true.