Burden Code Order Affects Calculation

Templates and the burden codes under each template are listed in the order you enter them. MPM applies burdens against a resource in the same order as they are listed in a template, so the order of the burdens is important. The order affects the total dollar amount chargeable against a resource.

In examples A and B that follow, the same burdens are applied against a resource but in two different sequences. In the examples, Prime Dollars = $10.00, and all burdens are 150%.

Example A: Correct Sequence

Burden

Applied Against

Calculation

Burden Amount

OH1

Prime Dollars

$10.00 x 150%

$15.00

OH2

Previous Burden Amount

$15.00 x 150%

$22.50

OH3

Prime Dollars

$10.00 x 150%

$15.00

OH4

Previous Subtotal
(Prime $ + all burdens)

$52.50 x 150%

$78.75

 

 

Total burden:

$131.25

Example B: Incorrect Sequence

Burden

Applied Against

Calculation

Burden Amount

OH4

Previous Total

$10.00 x 150%

$15.00

OH2

Previous Burden Amount

$15.00 x 150%

$22.50

OH1

Prime Dollars

$10.00 x 150%

$15.00

OH4

Prime Dollars

$10.00 x 150%

$15.00

 

 

Total burden:

$67.50

Related Topics

Creating a Burden Template

Procedure for Creating a New Burden Template

Burden Template Example and Terminology