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Labor Multiplier

Posted: Wed Dec 13, 2017 10:53 am
by JoeHarper
Hello.
We would like to know how using a labor multiplier account for the burden in Job Costing is routinely set up and executed.
In the Info Center, there is a Job Cost Labor Rate.
If I have Sam Smith who has a W-2 rate of $40.00 per hour, and I want to use a 1.3 burden rate, do I simply enter $52.00 for his job cost rate?

Or is there a place to enter $40.00 for his cost rate, and denote a 1.3 multiple, so when Sam Smith charges 8 hours to Job X, Job X shows $416.00 in labor costs. Not cost at billing rates. Sam Smith's cost at billing rate may be $74.00 per hour. If it was, we would want the Job Cost Report to show $592.00 in labor at billing, and $416.00 in labor at cost, for a gross profit of $176.00 and a gross margin of 29-30%.

thank you,
Joe Harper, CPA CCIFP