Summarize the following:
An overhead percentage tells you how much of your business is spent on overhead and how much is spent making a product. To find out your overhead percentage: Divided indirect costs by direct costs. In the example above, our overhead rating is .35 (16,800 / 48,000 = .35) Multiply this number by 100 to get your overhead percentage. Here, 35% This means that your business spends 35% of its money on legal fees, administrative staff, rent, etc. for every product it produces. The lower your overhead rating, the larger your profit. A low overhead rating is good! Assuming that all similar businesses pay roughly the same direct costs, companies with a lower overhead rating make more money when they sell their product. By lowering your overhead rating, you can sell your product at a more competitive price and/or earn higher profits.

Summary:
Find your overhead percentage. Use your overhead rating to compare yourself to similar businesses.