UNIVERSITY OF VIRGINIA
FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL
TITLE: FORMAT TO BE USED IN CALCULATING PROCEDURE: 5-1
SUPPORT SERVICE UNIT RATES
Policy Reference: V.A.2.
EXAMPLE 1: Research Support Laboratory
OPERATING STATISTICS (for period 07/19_1 - 06/19_2)
Charged out 1285 hours performing Test A on samples.
Charged out 1930 hours performing Test B on samples.
Total hours charged out: 1285 + 1930 = 3215 hours
PROJECTED CHARGEABLE HOURS (for period 07/19_2 - 06/19_3)
Net
Gross *Annual *Sick Non-Assignable Chargeable
Person Hours Leave Leave Hours Hours
A 2000 80 56 1000*** 864***
B 2000 80 56 200 1664
C 1000** 40 24 100 836
Total Hours 3364
PERSONNEL COSTS (for period 07/19_2 - 06/19_3)
Annual Chargeable
Person Salary Salary Test A Test B
A $24,000 $24,000*** $ 8,000 $16,000
B 17,500 17,500 8,750 8,750
C 30,000** 15,000** 3,750 11,250
Total Personnel Costs $20,500 $36,000
* Anticipated usage for next fiscal year.
** Person "C" is a full-time employee devoting only half-time to
this project. Only one-half of salary and anticipated leave
are considered in the calculation. The remaining salary is
paid from another funding source.
*** Person "A" is a supervisor whose total salary is paid by the
center. Although the supervisor works 50% of the time on
administrative duties and 50% of the time on actual testing,
the entire salary is a personnel cost that must be recovered
through rate charges. The allocation of chargeable salary to
Tests A and B is not based on chargeable hours, but rather on
the time needed to perform both the administrative and
productive duties associated with each test.
OTHER COSTS (for period 07/19_2 - 06/19_3)
Test A Test B
Fringe Benefits (23% x Salaries charged)# $ 4,715 $ 8,280
Lab Supplies 1,000 1,700
Contractual Services 1,000 2,000
Travel 400 600
Telephone 280 420
Equipment Repair & Maintenance 500 1,200
Depreciation (See attached schedule) 600 1,125
Total Other Costs 8,495 15,325
LESS: Subsidy from XYZ Center
($13,000 for the year)## (5,200) (7,800)
NET CHARGEABLE COSTS $23,795 $43,525
RATE CALCULATION
Total Chargeable Rate
Costs Hours Per Hour
Test A $23,795 1,346 (40%)### $17.68
Test B $43,525 2,018 (60%)### $21.56
# The fringe benefits rate is adjusted annually by the Payroll
Department.
## The distribution of the subsidy is 40/60 to Test A and Test B
respectively. The percentages in this example are based on
the distribution of labor hours charged out the previous year.
### Percentages are based on the actual results from the prior
year.
DEPRECIATION SCHEDULE
Date Useful Original Annual
Test A Acquired Life Cost Depreciation
Item #1 06/19_1 5 $3,000 $600
Test B
Item #2 05/19_2 2 $1,000 $500
Item #3 01/19_9 8 $5,000 $625
EXAMPLE 2: Research Copy Machine
Operating statistics from previous year:
Total actual copies made 07/19_1 - 06/19_2) 273,619
Operating Costs for 07/19_2 - 06/19_3)
Lease purchase of copier $ 5,300.00
Maintenance Agreement 4,400.00
Paper: Legal size (50 reams @ $3.25) 162.50
Letter size (525 reams @$2.60) 1,365.00
Toner: 12 cartons @$37.50 450.00
Developer: 1 bottle @$55.00 55.00
Fuser Lubricant: 2 bottles @$16.50 33.00
Total Operating Costs $11,765.50
LESS: Over-recovery from prior year (2,500.00)
Total Costs to be Recovered $ 9,265.50
Total Estimated Copies for Fiscal Year 19_2 - 19_3 $287,300
Total Costs $9,265.50
------------ --------- = 0.0323/copy
Total Copies 287,300
ISSUED BY: 04/02/90
Assistant Comptroller
Financial Analysis 5.1.3