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Annual Salary 32,974

Projected Merit and/or Range* 1,026


Portion of FTE Devoted to Activity 100%
Total Salary 34,000
Benefit % 24.96%
Benefit Amount 8,486
Total Salary and Benefits 42,486
Hours per year 2,080
less:
Vacation hours -120
Holiday hours -96
Sick Leave hours -64
Non-Productive hours -100
Portion of FTE Devoted to Activity 100%
equals: Chargable (Productive) hours 1,700
Total Salary and Benefits 42,486
divided by: Chargable Hours 1,700
equals: Hourly Recharge Rate $24.99
PRODUCTIVE TIME CALCULATION
The estimate of productive hours used in calculating recharge rates is determined
by deducting vacation, holiday, and sick hours usage from available working hours.
Also deducted are non-productive hours used for items such as training, general
maintenance, clean-up, etc. The productive hours are those hours that are
expected to be rechargable. When determining productive time the following
method should be used:
The department needs to take into account differences in employee vacation
accruals and non-productive hours. Determination of sick-leave usage and non-
productive hours can be estimated using past experience of the department as a
guide.
A description of the activities included within non-productive hours must be
included within the rate proposal to support the productive time calculation.
Recharge Personnel Hourly Rate Calculations
Account Name Department to complete green shaded areas
Account/Fund (copy columns as necessary for additional personnel)
Name Group Rate
Title
Annual Salary
Projected Merit and/or Range*
Portion of FTE Devoted to Activity
Total Salary 0 0 0 0
Benefit %
Benefit Amount 0 0 0 0Total Salary & Benefits
Total Salary and Benefits 0 0 0 0 0
Hours per year 2,080 2,080 2,080 2,080
less:
Vacation hours
Holiday hours
Sick Leave hours
Non-Productive hours
Portion of FTE Devoted to Activity 0% 0% 0% 0% Chargable Hours
equals Chargable (Productive) Hours: 0 0 0 0 0
Total Salary and Benefits 0 0 0 0 0
divided by Chargable Hours: 0 0 0 0 0
equals Hourly Recharge Rate:
(formulas are embedded in form)
* Effective date of projected merit and/or range
This calculation can
be used when a
group rate is
charged to users
Hourly Group
Recharge Rate
Recharge Personnel Hourly Rate Calculations
Total Salary & Benefits
SAMPLE RATE CALCULATION
ACTIVITY WHOSE SERVICES ARE MAINLY LABOR
Projected Operating Costs
Sub 1 Salaries 100,000
Sub 2 General Assistance 50,000
Sub 6 Employee Benefits 30,660
Subtotal Labor Costs 180,660
Sub 3 Supplies & Expenses 10,000
Sub 5 Equipment Depreciation 9,340
Sub 7 Other (Describe)
Total Operating Expense 200,000
Adjustment for Prior Years' Operations
Deduct Surplus or Add Deficit 0
Adjusted Total 200,000
Estimate Productive Hours 1,700 (from Productive Time calculation)
Hourly Rate 117.65 $
Notes:
1)
2)
For an activity, such as a machine shop, whose recharge rates are composed of
charges for labor and materials, the rate is normally an hourly rate and can be
calculated as follows:
This is a summary schedule and the preparer needs to provide information on
individual calculations associated with each cost component (I.e., salaries,
supplies, etc.).
Benefit percentages can be based on "Employee Benefit Data" provided in
attachment to Income and Recharge Guidelines or actual amounts from
department's payroll distribution reports.
SAMPLE RATE CALCULATION
MARK-UP ON STOCK ITEMS
Projected Operating Costs
Sub 1 Salaries 100,000
Sub 2 General Assistance 50,000
Sub 6 Employee Benefits 30,660
Subtotal Labor Costs 180,660
Sub 3 Supplies & Expenses 10,000
Sub 5 Equipment Depreciation 9,340
Sub 7 Other (Describe)
Total Operating Expense 200,000
Adjustment for Prior Years' Operations
Deduct Surplus or Add Deficit 0
Adjusted Total 200,000
Projected Cost of Material to be Resold 1,500,000
Calculation of Mark-Up Rate:
Total Expenses Percentage
Cost of Materials Mark-Up on Cost
200,000
1,500,000
Equals 13.33%
Rates for activities such as storerooms, which provide stock items to users, should
be based on the cost of the merchandise plus a mark-up to cover the salaries and
other operating expenses of the function. For a storehouse operation there may be a
single mark-up rate applicable to all stocked items, or multiple rates based on
categories of merchandise. The mark-up percentages may be calculated as follows:
Equals
SAMPLE RATE CALCULATION
ACTIVITY THAT PRODUCES GOODS OR TESTING SERVICES
Projected Operating Costs
Sub 1 Salaries 100,000
Sub 2 General Assistance 50,000
Sub 6 Employee Benefits 30,660
Subtotal Labor Costs 180,660
Sub 3 Supplies & Expenses 10,000
Sub 5 Equipment Depreciation 9,340
Sub 7 Other (Describe)
Total Operating Expense 200,000
Adjustment for Prior Years' Operations
Deduct Surplus or Add Deficit 0
Adjusted Total 200,000
Estimate Productive Hours 1,700 (from Productive Time calculation)
Hourly Labor Rate 117.65 $
Per Minute Labor Rate 1.96 $ (hourly rate divided by 60)
Notes:
1)
Many recharge activities provide a range of services that require many different
rates. These areas must develop a list or catalog of rates. Rates for individual
items are determined by calculating labor and other costs for each item. The first
step is to calculate an hourly labor rate which will recover general operating
expenses. If needed, the hourly rate can be reduced to a per-minute rate.
Included in the hourly labor rate are some "general" support expenses that
support the employee and are not part of any materials to be charged
separately.
INDIVIDUAL RATE CALCULATION
Service Description COLOR PRINT COLOR SLIDE
Detail Unit Cost Detail Unit Cost
Annual Item Production 100,000 100,000
Labor per Item in Minutes 2.00 1.00
Labor Cost per Minute 1.96 1.96
Labor Cost per Item 3.92 1.96
Material Cost per Item
Paper 4,000.00 0.04 10,000.00 0.10
Solution 2,000.00 0.02 5,000.00 0.05
Subtotal Materials 6,000.00 0.06 15,000.00 0.15
Special Equipment Maintenance 30,000.00 0.30 35,000.00 0.35
Special Equipment Depreciation 10,000.00 0.10 15,000.00 0.15
Subtotal 40,000.00 0.40 50,000.00 0.50
Per Item Rate $4.38 $2.61
REVENUE & EXPENSES SUMMARY
Revenues: (List all services provided) Volume Rate Total
Color Print 100,000 $4.38 438,000
Color Slides 100,000 $2.61 261,000
Total Revenues 699,000
Expenses: (Summarizes general operating & item specific costs)
Salaries 100,000
General Assistance 50,000
Employee Benefits 30,660
Supplies 10,000
General Equipment Depreciation 9,340
Special Equipment Depreciation 25,000
Equipment Maintenance 65,000
Materials 21,000
Total Expenses 311,000
Net Profit: (Total Revenues - Total Expenses) 388,000
STEP 1 - Estimate Annual Usage of Each Item
# Item Usage (Days) Total Usage (Days)
10 Tape Recorders 200 2,000
20 Camcorders 150 3,000
Total Usage in Days 5,000
STEP 2 - Calculate Per-Day General Operating Expenses
Projected Operating Expenses
Sub 1 Salaries 25,000
Sub 2 General Assistance -
Sub 6 Employee Benefits 5,000
Subtotal Labor Costs 30,000
Sub 3 Supplies & Expenses 3,000
Sub 5 Equipment Depreciation 2,000
Sub 7 Other -
Total Operating Expense 35,000
Adjustment for Prior Year's Operations
Deduct Surplus or Add Deficit -
Adjusted Total 35,000
Estimated Usage in Days 5,000
Operating Expenses Per Day $7.00
An activity which offers equipment or instruments for rental or use can develop a
rate for an individual item, such as a microscope. Rates for classes or groupings
of like items, such as computers, overhead projectors, or camcorders are also
possible. The following is an example of this type of rate calculation:
EQUIPMENT RENTAL OR USE
SAMPLE RATE CALCULATION
EQUIPMENT RENTAL RATES
Service Description TAPE RECORDERS CAMCORDERS
Detail Unit Cost Detail Unit Cost
Annual Usage in Days 2,000 3,000
Operating Expenses per Day 7.00 7.00
Special Equipment Maintenance 1,000.00 0.50 1,000.00 0.33
Special Equipment Depreciation 3,000.00 1.50 2,000.00 0.67
Subtotal 4,000.00 2.00 3,000.00 1.00
Per Item Rate $9.00 $8.00
REVENUE & EXPENSES SUMMARY
Revenues: (List all services provided) Volume Rate Total
Tape Recorders 2,000 $9.00 18,000
Camcorders 3,000 $8.00 24,000
Total Revenues 42,000
Expenses: (Summarizes general operating & item specific costs)
Salaries 25,000
Employee Benefits 5,000
Supplies 3,000
General Equipment Depreciation 2,000
Special Equipment Depreciation 5,000
Equipment Maintenance 2,000
Total Expenses 42,000
Net Profit: (Total Revenues - Total Expenses) -