Procedure: 403.A-Calculating Rates for Revenue Producing Activities (RPA)

Appendix 1 Schedule IX

Individual Direct Labor Rates for Department A




Employee

1
(From Sch IV)
Annual
Salary

2
(From Sch I)
Total
Hours

3
(From Sch I)
Fringe
Ben. Hours

4
(From Sch I)
Assignable
Hours

5
(From Sch III)
Billable
Hours

A

25,000.00

2,080

324

1,756

1,483

B

22,500.00

2,080

284

1,796

1,505

C

20,000.00

2,080

284

1,796

1,548




Employee

6

Billable
Hr. Ratio

7

Base Hours
Col 6 X Col 4

8
Rate Per
Billable Hour
Col 1/ Col7

9

Recovery
Col 7 X Col 8

A

77.9%

1,368

18.27

24,993.36

B

79.0%

1,419

15.86

22,505.34

C

82.7%

1,485

13.47

20,002.95

Summary - Individual Rates for Department A Employees



Employee

Direct Labor
Rate
(Col 8 Above)

Indirect
Labor
Schedule V

Indirect
Materials
Schedule VI


Depreciation
Schedule VII

Rate Per
Billable
Hour

A

18.27

4.75

.28

1.34

24.65

B

15.86

4.75

.28

1.34

22.23

C

13.47

4.75

.28

1.34

19.84

The decision to use composite, individual, or class of individuals, direct labor rates is based on the amount of variance between the individual rates, reason for the variance and how it affects the fairness and workability of the rate.

Procedure: 403.A-Calculating Rates for Revenue Producing Activities (RPA)