diff --git a/lib/redmine_contracts/budget_plugin_migration.rb b/lib/redmine_contracts/budget_plugin_migration.rb
index 4612627..ee74653 100644
--- a/lib/redmine_contracts/budget_plugin_migration.rb
+++ b/lib/redmine_contracts/budget_plugin_migration.rb
@@ -41,6 +41,8 @@ module RedmineContracts
     # @option options [boolean] :append_object_notes show the old Budget data be
     #                           added to the Deliverable notes (for debugging)
     #                           Defaults to true (will append)
+    # @option options [float] :overhead_rate the overhead rate to use when calculating hours.
+    #                         Defaults to 0
     def self.migrate(old_data, options={})
       @contract_rate = options[:contract_rate] ? options[:contract_rate].to_f : 150.0
       @account_executive = if options[:account_executive].present?
@@ -53,6 +55,7 @@ module RedmineContracts
                              end
 
       @append_object_notes = options[:append_object_notes].nil? ? true : options[:append_object_notes]
+      @overhead_rate = options[:overhead_rate].nil? ? 0 : options[:overhead_rate].to_f
       
       @@data = YAML.load(old_data)
 
@@ -148,14 +151,26 @@ module RedmineContracts
       total ||= 0
       
       if old_deliverable['overhead'].present?
+        if @overhead_rate != 0
+          hours = old_deliverable['overhead'] / @overhead_rate
+        else
+          hours = 0
+        end
+        
         deliverable.overhead_budgets << OverheadBudget.new(:deliverable => deliverable,
                                                            :budget => old_deliverable['overhead'],
-                                                           :hours => 0)
+                                                           :hours => hours)
       elsif old_deliverable['overhead_percent'].present?
         overhead = total * (old_deliverable['overhead_percent'].to_f / 100)
+        if @overhead_rate != 0
+          hours = overhead / @overhead_rate
+        else
+          hours = 0
+        end
+          
         deliverable.overhead_budgets << OverheadBudget.new(:deliverable => deliverable,
                                                            :budget => overhead,
-                                                           :hours => 0)
+                                                           :hours => hours)
 
       end
     end
diff --git a/lib/tasks/budget_plugin_migration.rake b/lib/tasks/budget_plugin_migration.rake
index c7bdb48..a32e4ca 100644
--- a/lib/tasks/budget_plugin_migration.rake
+++ b/lib/tasks/budget_plugin_migration.rake
@@ -6,6 +6,7 @@ namespace :redmine_contracts do
     options[:account_executive] = ENV['account_executive']
     options[:deliverable_manager] = ENV['deliverable_manager']
     options[:append_object_notes] = ENV['append_object_notes']
+    options[:overhead_rate] = ENV['overhead_rate']
     
     RedmineContracts::BudgetPluginMigration.check_for_installed_budget_plugin
     data = RedmineContracts::BudgetPluginMigration.export_data
diff --git a/test/integration/budget_plugin_migration_test.rb b/test/integration/budget_plugin_migration_test.rb
index d5d90fc..5b43785 100644
--- a/test/integration/budget_plugin_migration_test.rb
+++ b/test/integration/budget_plugin_migration_test.rb
@@ -120,36 +120,58 @@ class BudgetPluginMigrationTest < ActionController::IntegrationTest
       assert_equal [@other_user, @other_user, @other_user], Deliverable.all.collect(&:manager)
     end
 
-    should "create a new Overhead Budget record for any overhead" do
-      assert_difference("OverheadBudget.count", 3) do
-        RedmineContracts::BudgetPluginMigration.migrate(@data)
+    context "Overhead Budgets" do
+      should "create a new Overhead Budget record for any overhead" do
+        assert_difference("OverheadBudget.count", 3) do
+          RedmineContracts::BudgetPluginMigration.migrate(@data)
+        end
+
+        d = Deliverable.find_by_title("Deliverable One")
+        assert_equal 1, d.overhead_budgets.count
+        assert_equal 200, d.overhead_budget_total
+
+        overhead = d.overhead_budgets.first
+        assert overhead
+        assert_equal 200, overhead.budget
+        assert_equal 0, overhead.hours
       end
 
-      d = Deliverable.find_by_title("Deliverable One")
-      assert_equal 1, d.overhead_budgets.count
-      assert_equal 200, d.overhead_budget_total
+      should "create a new Overhead Budget record for any overhead percent" do
+        assert_difference("OverheadBudget.count", 3) do
+          RedmineContracts::BudgetPluginMigration.migrate(@data)
+        end
 
-      overhead = d.overhead_budgets.first
-      assert overhead
-      assert_equal 200, overhead.budget
-      assert_equal 0, overhead.hours
-    end
+        d = Deliverable.find_by_title("Deliverable 2")
+        assert_equal 1, d.overhead_budgets.count
+
+        overhead = d.overhead_budgets.first
+        assert overhead
+        assert_equal 12 * 25 * 1.5, overhead.budget
+        assert_equal 0, overhead.hours
 
-    should "create a new Overhead Budget record for any overhead percent" do
-      assert_difference("OverheadBudget.count", 3) do
-        RedmineContracts::BudgetPluginMigration.migrate(@data)
       end
 
-      d = Deliverable.find_by_title("Deliverable 2")
-      assert_equal 1, d.overhead_budgets.count
+      should "allow setting an overhead rate to compute the overhead hours" do
+        RedmineContracts::BudgetPluginMigration.migrate(@data, :overhead_rate => 100.0)
 
-      overhead = d.overhead_budgets.first
-      assert overhead
-      assert_equal 12 * 25 * 1.5, overhead.budget
-      assert_equal 0, overhead.hours
+        d1 = Deliverable.find_by_title("Deliverable One")
+        assert_equal 1, d1.overhead_budgets.count
+        assert_equal 200, d1.overhead_budget_total
 
+        overhead = d1.overhead_budgets.first
+        assert overhead
+        assert_equal 2, overhead.hours
+
+        d2 = Deliverable.find_by_title("Deliverable 2")
+        assert_equal 1, d2.overhead_budgets.count
+
+        overhead = d2.overhead_budgets.first
+        assert overhead
+        assert_equal 4.5, overhead.hours
+        
+      end
     end
-
+    
     should "create a new Fixed Budget record for any materials" do
       assert_difference("FixedBudget.count", 3) do
         RedmineContracts::BudgetPluginMigration.migrate(@data)