Is there a limit to the amount of money that can be budgeted for overhead in the Cost and Pricing section?

There is no maximum overhead rate as long as the percentage can be justified in accordance with the Federal Acquisition Regulation and Defense Contract Audit Agency (DCAA) policy. A narrative should be included in Appendix C justifying the factors that are used to compile the rate (see DCAA Manual 7641.90, Information for Contractors).