Overhead costs in woodworking refer to the indirect expenses incurred in running a woodworking business. These expenses are not directly associated with the production process but are necessary for operations. This includes costs for utilities, rent, insurance, taxes, office supplies, advertising, and employee salaries, among others. Understanding overhead costs is crucial for business owners in order to accurately determine pricing and profitability. By calculating and monitoring overhead costs, woodworkers can accurately allocate expenses and ensure a sustainable business model. Properly managing overhead costs is essential for maintaining a healthy bottom line and maximizing profitability in the woodworking industry.