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You are here: Ajera Help (A-Z) > Year-end > Evaluate your year > About distributing based on hours
This method allows you to calculate direct personnel expense (DPE) and overhead costs based on direct labor hours from your Expense and Other Income accounts for a more precise calculation than the fixed-percentages method.
Because hours vary over time, Ajera temporarily uses fixed percentages to represent DPE and overhead costs on project reports.
Ajera replaces the fixed-percentage amounts with the hours-based amounts when you distribute DPE/overhead costs.
When you distribute DPE based on hours, Ajera performs the following calculations.
When you distribute overhead based on hours, Ajera performs similar calculations.
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