Labor Type

The labor type is the method you use for allocating to projects your labor burden, or the additional costs you incur on behalf of employees apart from wages and salaries, such as workers' compensation premiums, holiday pay, or pension plan contributions.

If you specify a default labor type on the PJC Options screen, the specified labor type and associated rate or percentage appear as defaults in the Categories setup form.

You can also specify a default labor type for a particular contract on the Contract tab. The specified labor type and rate or percentage appear as defaults for all the new projects that you add to the contract.

You can choose None, Flat Rate Per Labor Hour/Unit, or Percentage Of Labor Cost as the labor type.

If you select Flat Rate Per Labor Hour/Unit as the default overhead type, you enter a dollar amount for the labor burden associated with each labor hour per unit produced.

If you select Percentage Of Labor Cost as the default labor type, you enter the percentage of your labor costs that represents overhead.