How to Automatically Calculate Indirect Costs in Project Budgets Using Rate and Burden Schedules
Summary:
We are currently using Manage Rate Schedules to define hourly costs by job and calculate both project budget and actual costs based on working hours.
Additionally, we use Manage Burden Schedules to apply burden multipliers to labor-related actual costs in order to calculate indirect costs.
For actual costs, the system correctly calculates the total cost using the formula:
Job-based working hours × hourly cost × burden multiplier.
However, for budget costs, there is no equivalent mechanism.
As a result, we first calculate job-based working hours × hourly cost, then manually apply the burden multiplier outside the system and enter the total cost manually.
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