5 Other Direct Indirect Costs by huangyuarong

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									SERVICE CENTER BILLING RATE APPROVAL REQUEST                                                                                                                                                                                                       PAGE 1



Date:          9/30/2011

Account Number:        XT123456

Department:            Department of Cost Accounting

Contact Person (name & #):           Becca Fedewa 4-4193

Description/Title of Service:        Hourly Professional Services/Design Services/or Other Serivces (billed based on labor hours)

Rate Effective Date:      1/1/2012

First Time Request or Update/Renewal of Rates:                Renewal If update/renewal, complete lookback analysis on Tab/Page 6

INSTRUCTIONS:Complete the supporting tabs to compile costs of providing this service. Summarize the totals from other tabs in the summary
             below, and fill in the desired rates for each user goup. Text in green needs to be updated (or added to). Add to this template as
             needed. ALL COSTS INCLUDED IN THIS ANALYSIS SHOULD BE EXPENSES ON THE REVOLVING ACCOUNT SHOWN ABOVE.

User Groups: X         External      Rates:   See below +25% per (unit) HOUR             Explanation (if higher):   Prevailing Market Price (could also be to fund
                                                                                                                    other dept. activities or build reserves)
               X       On-Campus Rates:       See below       per (unit) HOUR
               X       Federal       Rates:   See below       per (unit) HOUR


BILLING RATE DOCUMENTATION SUMMARY
                                                                                                                                                                                                                               LOOKBACK
                                                                   DIRECT LABOR PER           INDIRECT LABOR PER        DIRECT MATERIALS           EQUIPMENT USE            OTHER DIRECT COSTS       OTHER INDIRECT           ADJUSTMENT            TOTAL HOURLY
SUMMARY OF ROLES/SERVICES                                          HOUR (PAGE/TAB2)            HOUR (PAGE/TAB 2)          (PAGE/TAB 3)              (PAGE/TAB 4)               (PAGE/TAB 5)         COSTS (PAGE/TAB 5)        (PAGE/TAB 6               RATE
DESIGNER                                                       $                 71.99    $                 12.95   $                   -      $                     0.40   $                 -     $              1.02   $                 3.50   $         89.86
CUSTOMER CONSULTANT                                            $                 46.59    $                 12.95   $                   -      $                     0.40   $                 -     $              1.02   $                 3.50   $         64.46
CONSTRUCTION WORKER                                            $                 43.73    $                 12.95   $                   -      $                     0.40   $                 -     $              1.02   $                 3.50   $         61.60
INSPECTOR                                                      $                 70.10    $                 12.95   $                   -      $                     0.40   $                 -     $              1.02   $                 3.50   $         87.97
ASSISTANT OR STUDENT TECH                                      $                 11.94    $                 12.95   $                   -      $                     0.40   $                 -     $              1.02   $                 3.50   $         29.81
SITE MANAGER                                                   $                 73.72    $                 12.95   $                  -       $                     0.40   $                  -    $              1.02   $                 3.50   $         91.59
                                                                                                                    SEE TAB 3, and note A                                   SEE TAB 5, and note B
                                                                                                                           below                                                   below



Note A: Direct Materials, where applicable, will be billed to customers/clients at the cost for which they were purchased. No markup since overhead costs are included in labor rates.
Note B: Other Direct Costs such as shipping to a particular client or travel to/from a client will be billed at cost or as described on Tab 5 (mileage).

E-mail completed workbook or questions to billing.rates@ctlr.msu.edu
or contact Becca Fedewa at 355-5029 with questions.
DIRECT AND INDIRECT PERSONNEL COSTS                                                                                                                                         PAGE 2

DIRECT PERSONNEL COSTS:
NOTE: Please list only those employees that will be working on projects/providing services that will be performing the work to be billed for.
To calculate the blended hourly rate, individuals with similar roles should be grouped together. Under this method, employees must track hourly time
and bill hourly for their services (even if paid salary instead of hourly). This tracking can be done in any shadow system at the departmental level.
NOTE: ONLY THE PORTION OF THE LABOR AND FRINGE COSTS THAT ARE AN EXPENSE TO THE REVOLVING ACCOUNT MAY BE INCLUDED IN THE RATES.
     IF A SALARIED EMPLOYEE IS PAID ON A GENERAL FUND OR GRANT ACCOUNT, BUT PERFORMS BILLABLE SERVICE WORK, A COST REDISTRIBUTION SHOULD
     BE PROCESSED IN SAP (AND AN EFFORT REPORT SHOULD BE PREPARED IF EFFECTING A GRANT ACCOUNT) TO MOVE THE APPROPRIATE % OF THAT PERSON'S
     PAY TO THE REVOLVING ACCOUNT. FOR HOURLY EMPLOYEES, SELECT THE REVOLVING ACCOUNT FOR HOURS SPENT ON THIS SERVICE WHEN PROCESSING PAYROLL.

                                                    % Effort on                                                         Cost Related to       Billable
                                                       This         Annual Pay Per                    Annual Salary &        This           Hours/Year
Employee Name             Employee Title or Role   Service/Acct**      Person *         ***Fringe %       Fringe         Service/Acct     (this acct only)
                                                       ROLE: DESIGNER
Employee #1             DESIGNER                    10%               $65,008             48.00%              $96,214           $9,621               150
Employee #2             DESIGNER                    20%               60,000              36.92%              82,154           16,431                350
Employee #3             DESIGNER                    100%              87,123              32.22%             $115,192         115,192              1,045
Employee #4             DESIGNER                    100%              68,220              36.23%              92,937           92,937              1,451
Employee #5             DESIGNER                    100%              72,207              35.18%              97,613           97,613              1,058
Employee #6             DESIGNER                    100%              72,020              35.36%              97,487           97,487              1,327
Employee #7             DESIGNER                    100%              40,235              33.84%              53,851           53,851                800
Employee #8             DESIGNER                    75%               60,000              33.84%              80,305           60,228                439
Employee #9             DESIGNER                    90%               74,000              35.07%              99,948           89,953              1,200
Employee #10            DESIGNER                    100%              75,270              34.66%             101,361          101,361              2,000
Employee #11            DESIGNER                    100%              56,690              38.86%              78,719           78,719              1,500
Employee #12            DESIGNER                    100%              46,500              44.05%              66,984           66,984              1,199
Employee #13            DESIGNER                    100%              45,067              35.18%              60,922           60,922                450
Employee #14            DESIGNER                    100%              62,370              37.69%              85,877           85,877              1,300
                                         TOTAL FOR THIS ROLE        $884,710                               $1,209,563      $1,027,176            14,269

                                                                                     TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                 $1,027,176
                                                                                                        TOTAL BILLABLE HOURS                      14,269
                                                                                           AVERAGE COST PER HOUR (for this Role)          $        71.99 PER HOUR (to Tab/Page 1)


                                                  ROLE: CUSTOMER CONSULTANT
Employee #15            CUSTOMER CONSULTANT    100%             $40,457  38.26%                               $55,935          $55,935             1,250
Employee #16            CUSTOMER CONSULTANT    100%             53,408   35.14%                               72,178           72,178              1,500
                                    TOTAL FOR THIS ROLE        $93,865                                       $128,112        $128,112             2,750

                                                                                     TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                  $128,112
                                                                                                        TOTAL BILLABLE HOURS                      2,750
                                                                                           AVERAGE COST PER HOUR (for this Role)          $       46.59 PER HOUR (to Tab/Page 1)


                                                   ROLE: CONSTRUCTION WORKER
Employee #17            CONSTRUCTION WORKER     100%             $61,657  37.04%                              $84,493          $84,493             1,250
Employee #18            CONSTRUCTION WORKER     100%             32,156   28.22%                              41,230           41,230              1,280
Employee #19            CONSTRUCTION WORKER     100%             35,159   33.62%                              46,979           46,979              1,100
Employee #20            CONSTRUCTION WORKER     100%             56,811   34.98%                              76,682           76,682              2,000
Employee #21            CONSTRUCTION WORKER     100%             61,265   36.32%                              83,515           83,515              1,950
Employee #22            CONSTRUCTION WORKER     100%             61,436   38.01%                              84,790           84,790              1,652
Employee #23            CONSTRUCTION WORKER     100%             62,685   37.87%                              86,426           86,426              1,765
Employee #24            CONSTRUCTION WORKER     100%             44,451   35.73%                              60,333           60,333              1,622
Employee #25            CONSTRUCTION WORKER     100%             67,683   35.30%                              91,576           91,576              2,217
Employee #26            CONSTRUCTION WORKER     100%             58,462   33.96%                              78,314           78,314              1,486
Employee #27            CONSTRUCTION WORKER     100%             46,537   35.87%                              63,229           63,229              1,564
Employee #28            CONSTRUCTION WORKER     100%             38,546   33.77%                              51,563           51,563              1,159
Employee #29            CONSTRUCTION WORKER     100%             39,854   28.37%                              51,162           51,162              1,541
                                     TOTAL FOR THIS ROLE       $666,701                                      $900,293        $900,293            20,586

                                                                                     TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                  $900,293
                                                                                                        TOTAL BILLABLE HOURS                     20,586
                                                                                           AVERAGE COST PER HOUR (for this Role)          $       43.73 PER HOUR (to Tab/Page 1)


                                                       ROLE: INSPECTOR
Employee #30            INSPECTOR                   100%              $77,141             34.20%             $103,520          $103,520            1,250
Employee #31            INSPECTOR                   100%              98,246              30.61%             128,324           128,324             1,854
Employee #32            INSPECTOR                   100%              64,402              37.36%              88,463            88,463             1,234
Employee #33            INSPECTOR                   100%              31,641              37.78%              43,595            43,595             1,000
Employee #34            INSPECTOR                   100%              19,910               7.65%              21,433            21,433               250
Employee #35            INSPECTOR                   100%              65,505              37.22%              89,887            89,887             1,085
Employee #36            INSPECTOR                   100%              84,233              32.82%             111,880           111,880             1,650
Employee #37            INSPECTOR                   100%              84,746              32.52%             112,307           112,307             1,654
                                         TOTAL FOR THIS ROLE        $525,824                              $699,409.16          $699,409            9,977

                                                                                     TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                  $699,409
                                                                                                        TOTAL BILLABLE HOURS                      9,977
                                                                                           AVERAGE COST PER HOUR (for this Role)          $       70.10 PER HOUR (to Tab/Page 1)


                                                    ROLE: ASSISTANT OR STUDENT TECH
Employee #38            ASSISTANT OR STUDENT TECH100%               $6,400   7.65%                             $6,890         $6,889.60               598
Employee #39            ASSISTANT OR STUDENT TECH100%               2,896    7.65%                             3,118             3,118                205
Employee #40            ASSISTANT OR STUDENT TECH100%               8,952    7.65%                             9,637             9,637                600
Employee #41            ASSISTANT OR STUDENT TECH50%               12,528    7.65%                            13,486             6,743               1052
Employee #42            ASSISTANT OR STUDENT TECH100%              16,584    7.65%                            17,853            17,853               1250
                                      TOTAL FOR THIS ROLE         $47,360                                  $50,983.04        $44,239.84              3705

                                                                                     TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                    $44,240
                                                                                                        TOTAL BILLABLE HOURS                       3,705
DIRECT AND INDIRECT PERSONNEL COSTS                                                                        PAGE 2
                                      AVERAGE COST PER HOUR (for this Role)   $   11.94 PER HOUR (to Tab/Page 1)
DIRECT AND INDIRECT PERSONNEL COSTS                                                                                                                                                                       PAGE 2
                                                           ROLE: SITE MANAGER
Employee #43                    SITE MANAGER            100%              $98,502                        27.86%                $125,943       $125,943.22                    1208
Employee #44                    SITE MANAGER            100%              85,246                         25.87%                107,297           107,297                     1659
Employee #45                    SITE MANAGER            100%              75,824                         23.22%                 93,427            93,427                     1564
                                             TOTAL FOR THIS ROLE        $259,572                                            $326,667.13       $326,667.13                    4431

                                                                                                  TOTAL DIRECT PERSONNEL COST FOR THIS ROLE                             $326,667
                                                                                                                     TOTAL BILLABLE HOURS                                 4,431
                                                                                                        AVERAGE COST PER HOUR (for this Role)                    $        73.72 PER HOUR (to Tab/Page 1)



                                                                                                TOTAL BILLABLE HOURS FOR ALL ROLES                                      55,718 to Tab/Page 1


INDIRECT PERSONNEL COSTS:
NOTE: These employees provide support services, but will not bill for and track their time. Their primary role is to support/supervise the direct personnel above
or support the entire unit's activity.
NOTE: ONLY THE PORTION OF THE LABOR AND FRINGE COSTS THAT ARE AN EXPENSE TO THE REVOLVING ACCOUNT MAY BE INCLUDED IN THE RATES.
     IF A SALARIED EMPLOYEE IS PAID ON A GENERAL FUND OR GRANT ACCOUNT, BUT PERFORMS BILLABLE SERVICE WORK, A COST REDISTRIBUTION SHOULD
     BE PROCESSED IN SAP (AND AN EFFORT REPORT SHOULD BE PREPARED IF EFFECTING A GRANT ACCOUNT) TO MOVE THE APPROPRIATE % OF THAT PERSON'S
     PAY TO THE REVOLVING ACCOUNT. FOR HOURLY EMPLOYEES, SELECT THE REVOLVING ACCOUNT FOR HOURS SPENT ON THIS SERVICE WHEN PROCESSING PAYROLL.

                                                          % Effort on                                                                     Cost Related to
                                                             This       Actual Annual Pay                             Annual Salary &          This
Employee Name                     Employee Title or Role Service/Acct**    Per Person *                ***Fringe %        Fringe           Service/acct
Employee #46                    DIRECTOR                     100%                 $128,654                27.86%             $164,495         $164,495.12
Employee #47                    ASST . DIRECTOR              100%                  90,156                 25.87%              113,477            113,477
Employee #48                    ASST . DIRECTOR              100%                  92,498                 23.22%              113,972            113,972
Employee #49                     STUDENT (GENERAL ASST.) 50%                        5,405                  7.65%                5,818               2,909
Employee #50                    CLERICAL                      50%                  45,243                 46.50%               66,281             33,140
Employee #51                    ADMINISTRATIVE               100%                  55,243                 41.60%               78,224             78,224
Employee #52                    MARKETING AGENT              100%                  65,123                 38.20%               90,000             90,000
Employee #53                    MARKETING AGENT               50%                  59,654                 40.40%               83,754             41,877
Employee #54                    TECH/COMPUTER SUPPORT 100%                         59,542                 40.39%               83,591             83,591
                                  TOTAL INDIRECT PERSONNEL COSTS                $601,518                                  $799,612.84         $721,685.99

                                                                                           TOTAL INDIRECT PERSONNEL COSTS                     $721,685.99
                                                                                   TOTAL BILLABLE HOURS (SEE DIRECT ABOVE)                        55,718
                                                                                          INDIRECT PERSONNEL HOURLY COST $                         12.95 PER HOUR (to Tab/Page 1)

* Annual pay may be an estimate for the upcoming year or the actual pay for the prior year.
** Effort is the percentage of time expected to be spent providing this service or in support of this service. Remember that these costs need to be recorded on the revolving account for this service.
*** Fringe rates can be found at http://www.ctlr.msu.edu/copayroll/Fringes.aspx           or use the actual fringe costs shown on ledgers.
                                                                                     PAGE 3

DIRECT MATERIALS
Costs charged to the revolving account that are specifically identifiable with relative ease
and high degree of accuracy. The expenses must be recorded on the revolving account
and not a general fund or federal grant account.
                                                                          Cost per Year
                                                                          Related to this
Description                                                               Service
Direct materials used in the provision of services will be billed at cost. No mark up
will be made on materials since indirect costs are included in the labor/personnel rates.


                                   TOTAL DIRECT MATERIALS $                             -
                      TOTAL BILLABLE HOURS (from Tab/Page 2)                         55,718
                                                DIRECT MATERIALS $                       -     PER BILLABLE HR(to Tab/Page 1)
                                                                                                                                  PAGE 4

EQUIPMENT USE FEE (INDIRECT)
NOTE: Include only the capitalized equipment (costing > or = $5,000) used in providing goods/services which are charged to the
    Federal grants and that were originally purchased with non-Federal and non-General Fund monies.


                                  EQUIPMENT COST ANALYSIS
                                                                                  %               Cost
                                                                                  Related      Related to
                                           Original  Estimated         Annual     to this         This
              Description                   Cost        Life            Cost      Serivce        Service
Printers                                  $ 55,000        7          $    7,857        100%    $ 7,857.14
Office printer/scanner (for whole dept)   $ 10,000        7          $    1,429           5%   $    71.43
Microscope                                $ 25,000        7          $    3,571          50%   $ 1,785.71
CAD software                              $    8,500      5          $    1,700        100%    $ 1,700.00
Drafting Equipment                        $ 50,000        7          $    7,143        100%    $ 7,142.86
Analysis Software                         $    5,250      5          $    1,050          80%   $ 840.00

                                                                      Total Equipment Cost $      19,397




                           EQUIPMENT OPERATIONAL EXPENSES
                                                                                %                 Cost
                                                                                Related        Related to
                                                                       Annual   to this           This
Description                                                             Cost    Serivce          Service
Maintenance contracts on Above Equip (per year)                      $    2,000        80%     $    1,600
Ink Cartridges (for testing printer)                                      1,000      100%      $    1,000
Toner for Office printer/scanner                                          3,000         5%     $      150

                                                        Total Equipment Operational Costs $        2,750




Allocation Method for % Related to this Service:

                                           Based on estimated time each machine is used for this service
                                             compared to total time. Differs for each machine, and the
                                          operational costs are the same as the machine when specifically
                                                                     identifiable.



                                                   TOTAL ANNUAL EQUIPMENT COSTS $                 22,147
                                              TOTAL BILLABLE HOURS (from Tab/Page 2)              55,718
                                                                          EQUIPMENT USE $            0.40 PER BILLABLE HOUR (to Tab/Page 1)
                                                                                                                                         PAGE 5

OTHER DIRECT COSTS:
NOTE: Please include only those other direct expenses that will be directly attributable to the service.
    These costs must be paid on the revolving account (not general fund or federal grant accounts).
                                                                           Annual
Description                                                                Amount
Travel                                                                  $0.55/mile       *Approved IRS/MSU rate. Billed per mile. (to Tab/Page 1)
Patent Application                                                 approx $3500/app * Approx. Actual legal expense will be passed to client at cost (to Tab/Page 1)
Other                                                                   at cost          *Other direct costs will be billed at cost, without markup (ex: shipping to client) (to Tab/Page 1)


                                      TOTAL OTHER DIRECT COSTS $                     -    (Note, if direct costs are to be allocated by billable hours, use this calc)

                       TOTAL BILLABLE HOURS (from Tab/Page 2)                    55,718

TOTAL OTHER DIRECT COSTS PER BILLABLE HR(to Tab/Page 1) $                            -




OTHER INDIRECT COSTS:
NOTE: Costs that support the whole department, but can't be tracked/charged by the specific service (and therefore must be allocated)
     These costs must be paid on the revolving account (not general fund or federal grant accounts).
                                                                                        % Related
                                                                          Annual          to this    Cost Related to
Description                                                               Amount          Serivce     This Service
Paper                                                                  $ 23,500.00              25% $       5,875.00
Office Supplies (paper clips, staples, etc)                            $ 20,000.00              25% $       5,000.00
Telephone Access Charges                                               $ 27,500.00              25% $       6,875.00
Network Storage Contracts                                              $ 27,085.00              25% $       6,771.25
Other Administrative and Office Wide Support Costs                     $ 35,012.00              25% $       8,753.00
Office Wide Shipping Costs (net of direct costs billed to client)      $ 35,102.00              25% $       8,775.50
Equipment (costing < $5,000 each and not included elsewhere)           $ 59,050.00              25% $      14,762.50

Allocation Method for % Related to this Service:

            Analyzed total revenue for this Service Center of $1,000,000 per year. Revenue from providing this
            specific testing has historically been about $250,000/year, so 25% used as allocated to this service. (Could
            also use study of % effort from all personnel or other reasonable method.



                                                                   TOTAL OTHER INDIRECT COSTS $                    56,812

                                                      TOTAL BILLABLE HOURS (from Tab/Page 2)                       55,718

                                                                           OTHER INDIRECT COSTS $                     1.02   PER BILLABLE HOUR (to Tab/Page 1)
LOOKBACK ANALYSIS (REQUIRED FOR UPDATED/RENEWED RATES)                                                                                   Page 6

Revenues that exceed the actual costs of a service can not be used to subsidize other services of the Service
Center (except for external users).
Surplus should not exceed 60 days of working capital
Surpluses or deficits should be used to adjust future billing rates or be credited back to users (as described in i).
This effort can exclude the balance created on external customers, so long as these surpluses can be documented.
It is the department’s responsibility to maintain operating statements to support calculations used to develop and
review rates.

Annual review is encouraged, but at least biennially (every 2 years) is required.

THIS ANALYSIS SHOULD AGREE TO THE OPERATING STATEMENTS/FUND LEDGERS FOR THE GIVEN PERIOD.

Time Period Used for Lookback
From:    7/1/2010      To: 6/30/2011
ALL INFORMATION BELOW SHOULD TIE DIRECTLY TO OPERATING STATEMENTS FOR THE PERIOD USED.

REVENUE - Prior Period (up to 2 years
                                                                                          Amount
Prior Year Revenue for this Service                                                        $ 1,185,000.00
Less "markup" for External Users                                                           $ (25,000.00)
                                                  NET REVENUE GENERATED FOR COST RECOVERY $ 1,160,000.00

EXPENSES OR COSTS - Prior Period (up to 2 years)
                                                                                              Amount
Total Direct Expenses Incurred for Performing this Service in Prior Year                       $ 1,400,000.00
Total Indirect Costs Allocated to this Service (using methods consistent with approved rates)  $    55,000.00
                                           NET COSTS OF PROVIDING THE SERVICE IN PRIOR PERIOD $ 1,455,000.00

                                          PRIOR PERIOD NET (REVENUE LESS EXPENSES OR COSTS) $ (295,000.00)
               PRIOR CUMULATIVE SURPLUS/(DEFICIT) FROM MOST RECENT LOOKBACK ANALYSIS $                   100,000.00
                                                                  CUMULATIVE SURPLUS/(DEFICIT) $ (195,000.00)

                                      REVERSE CUMULATIVE SURPLUS (DEFICIT) FOR THE SERVICE $             195,000.00
                                                       TOTAL BILLABLE HOURS (from Tab/Page 2)                  55,718
                                                 CUMULATIVE LOOKBACK RECOVERY (REDUCTION) $                      3.50   PER BILLABLE HOUR (to Tab/Page 1)

								
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