This is similar to the Loaded Labor Rate formula and is based on allowable hours (the lesser of actual or ceiling amounts) multiplied by rate per hour.

The rate is derived during the Load Labor Rates process. If you modify the multiplier, it is retroactive to the beginning of the fiscal year. The modification is reflected in the current period.

The labor calculation consists of the following:

• Allowable labor hours (the lesser of actual or ceiling amounts) are multiplied by the calculated billing rate (the Revenue Rate Amount from the LAB_HS table).
• The lower of either a ceiling rate OR actual hourly rate is multiplied by allowable labor hours. This amount is then marked up by the multiplier rates.
• The rate schedule is determined by the Revenue Rate Amount from the LAB_HS table. Rates are set up with a rate type of A (Actual rate), B (Billing rate), or C (Ceiling rate).
• The non-labor multiplier (from the Manage Revenue Information screen) is applied to allowable non-labor costs.
• Labor Multiplier applied to labor billed at actual or ceiling rates.