Calculating overhead percent
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For each project transaction that occurs during the date range specified
in the Distribute DPE/Overhead window, it:
- Divides the hours of the transaction by the total hours
of all direct labor transactions in the date range, based on transaction
date.
This determines the percentage
of the total hours for which the transaction is responsible.
- Multiplies this percent by the total cost of all general
ledger entries in the date range for accounts with project
distribution of Overhead selected.
This determines the overhead
cost for the transaction.
- Divides the overhead cost by the cost of the project
transaction.
This determines the overhead
percent of the transaction.
For example, if the hours of one project transaction is 2, and the hours
of all the transactions is 10, the transaction is responsible for this
percentage of the total cost:
2
/ 10 = 20%
If the overhead cost for all the general ledger entries is $350, then
the overhead cost for the one transaction is:
20%
x $350 = $70
The overhead percent for the $60 transaction is:
$70
/ $60 = 116.67%
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Calculating project cost with overhead
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The overhead amount added to your project labor cost is calculated as
follows:
(Cost
Amount x Overhead Percent) + Cost Amount
For example, if the cost is $60 and overhead percent is 116.67%, then:
($60
x 116.67%) + $60 = $130
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Calculating burdened cost
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Burdened project cost is calculated as follows:
- Cost
Amount + DPE Amount + Overhead (calculated on Labor + DPE)
For example, if the cost amount is $60, the DPE amount is $15, and the
overhead is $87.50, then burdened project cost is:
$60+
$15 + $87.50= $162.50
Note: |
On the Transaction widget, use columns Cost Amount Burdened and Cost + Premium Amount Burdened. |
- Cost + DPE + Overhead (calculated on Labor only)
For example, if the cost amount is $60, the DPE amount is $15, and the overhead amount is $70, then the burdened project cost is:
$60 + $15 + $70 = $145
Note: |
On the Transaction widget, use columns Cost + DPE + Overhead and Cost + Premium Cost + DPE + Overhead. |
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