Overhead meaning operating costs. Like office space rent (you can write of a room in your house), electricity, phone, etc. Also, paper and office supplies. You try to build this cost in your profit margin so you don’t lose money. If you do lose money, at least you will know why.
We pay freelance animators $40-$65 depending on experience and proficiency. However, we do expect certain assignments to be completed for a negotiated amount. If the consultant takes too long or has problems due to his/her own limitations, they have to eat the cost/time. Basically when this happens, just look at as your hourly rate went down a few dollars.
Don’t forget to write off your mileage. Write off EVERYTHING! Check with your accountant, if you don’t have an accountant, just talk to someone at H&R Block or similar service. Like I said earlier, I do not get much freelance, but I still deduct everything. My computer, software, cable modem, books. Just about anything I can get away with claiming. When I go on vacation, I make sure to set up an appointment with some local company to discuss graphics. This way I can write off a portion of the trip! You don’t have to get work from them or sell them, you just have to do something to make a legit write off.