{"id":8717,"date":"2022-04-11T07:25:49","date_gmt":"2022-04-11T11:25:49","guid":{"rendered":"http:\/\/199.250.223.35\/~craftbrewery\/?p=8717"},"modified":"2023-02-03T16:19:32","modified_gmt":"2023-02-03T21:19:32","slug":"beer-costing-de-mystifying-labor-and-overhead","status":"publish","type":"post","link":"https:\/\/craftbreweryfinance.com\/oldversion\/beer-costing-de-mystifying-labor-and-overhead\/","title":{"rendered":"Beer Costing: De-Mystifying Labor and Overhead"},"content":{"rendered":"<p>One of the great mysteries is how to calculate labor and overhead so that they are included in your beer costs.<\/p>\n<h2>In this post, we&#8217;ll <strong>simplify labor and overhead costs so that you can solve this cost mystery<\/strong> in your beer business.<\/h2>\n<h3>The 5 W&#8217;s of Labor and Overhead Costs<\/h3>\n<ul>\n<li><strong>Who?<\/strong>\n<ul>\n<li>Designate a person (or team) responsible to keep costs updated: Inventory manager, head brewer, and\/or a finance person<\/li>\n<\/ul>\n<\/li>\n<li><strong>What?<\/strong>\n<ul>\n<li>Update labor rates and total time used in the production process, update expenses related to leases, utilities, supplies<\/li>\n<\/ul>\n<\/li>\n<li><strong>Where?<\/strong>\n<ul>\n<li>Labor and overhead costs affect inventory value and cost of goods sold, be sure to update both<\/li>\n<\/ul>\n<\/li>\n<li><strong>Why?<\/strong>\n<ul>\n<li>Understand the total costs to produce and package your beer<\/li>\n<\/ul>\n<\/li>\n<li><strong>When?<\/strong>\n<ul>\n<li>Update labor and overhead quarterly or semi-annually, or use a brewery management software like Ekos<\/li>\n<\/ul>\n<\/li>\n<li><strong>How?<\/strong>\n<ul>\n<li>Direct labor (hourly rate x hours), overhead includes all costs directly related to the production and packaging of your beer<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>For more details on labor and overhead costing, check out the online course <em>Brewery Deep Dive: Pricing and Costing your Beer<\/em>. It&#8217;s included with your subscription to <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/downloads\/craft-brewery-finance-annual-subscription-plan\/\">Craft Brewery Financial Training.<\/a><\/strong><\/p>\n<blockquote><p><em>Check out our Spring Special: <a href=\"https:\/\/craftbreweryfinance.com\/oldversion\/downloads\/craft-brewery-finance-annual-subscription-plan\/\">Use Coupon Code SPRINGCLEAN to Save 33%<\/a> off the Craft Brewery Financial Training subscription. There&#8217;s no better time than Spring to improve sales, profits, and cash flow in your brewery!<\/em><\/p><\/blockquote>\n<h3><em>Watch the 4-minute video: Beer Costing Labor and Overhead<\/em><\/h3>\n<div style=\"padding: 56.25% 0 0 0; position: relative;\"><iframe style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%;\" title=\"CBFT Beer Costing Labor and OH.mp4\" src=\"https:\/\/player.vimeo.com\/video\/670358904?h=4e3f6d4eee&amp;badge=0&amp;autopause=0&amp;player_id=0&amp;app_id=58479\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p><script src=\"https:\/\/player.vimeo.com\/api\/player.js\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the great mysteries is how to calculate labor and overhead so that they are included in your beer costs. In this post, we&#8217;ll simplify labor and overhead costs so that you can solve this cost mystery in your beer business. The 5 W&#8217;s of Labor and Overhead Costs Who? Designate a person (or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10802,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[63],"tags":[],"class_list":["post-8717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial"],"_links":{"self":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/8717"}],"collection":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/comments?post=8717"}],"version-history":[{"count":0,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/8717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media\/10802"}],"wp:attachment":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media?parent=8717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/categories?post=8717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/tags?post=8717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}