Fremont defines different schedules to calculate burden cost for labor costing, internal costing, and billing. Fremont defines three burden schedules:
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· Labor Billing Only
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· Internal Costing
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· Cost Plus Billing
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Initially, provisional multipliers are used in the billing schedule. As better estimates are available, Fremont defines new revisions of burden schedules. Fremont defines the labor burden and internal costing schedules with firm multipliers, because the multipliers should not change for the year. Provisional multipliers are ultimately replaced by actual multipliers.
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Fremont's implementation team first defines the standard schedule to use for labor costing on specific indirect projects. This schedule is based on firm multipliers, and consists of two revisions, one for 1993, and one for 1994.
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Burden Schedule for Labor Burden Only
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Name
| Labor Burden Only
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Description
| Burden schedule for labor costing
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Structure
| Labor Only Structure
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Type
| Firm
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Revisions
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Name
| 1993 Multipliers
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Start Date
| 01-JAN-1993
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End Date
| 31-DEC-1993
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Multipliers
|
Organization
| Burden Cost Code
| Multiplier
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Fremont Corporation
| Overhead
| 1.20
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Revisions
|
Name
| 1994 Multipliers
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Start Date
| 01-JAN-1994
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End Date
| 31-DEC-1994
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Multipliers
|
Organization
| Burden Cost Code
| Multiplier
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Fremont Corporation
| Overhead
| 1.25
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Revisions
|
Name
| 1995 Multipliers
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Start Date
| 01-JAN-1995
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End Date
|
|
Multipliers
|
Organization
| Burden Cost Code
| Multiplier
|
Fremont Corporation
| Overhead
| 1.5
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Fremont's implementation team next defines the standard schedule to use for internal costing of contract and capital projects. This schedule is based on firm multipliers, and consists of one revision.
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Burden Schedule for Labor Costing
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Name
| Internal Costing
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Description
| Burden schedule for internal costing
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Structure
| CP Buildup Structure
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Type
| Firm
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Revisions
|
Name
| Revision 1
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Start Date
| 01-JAN-1993
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Multipliers
|
Organization
| Burden Cost Code
| Multiplier
|
Fremont Corporation
| Overhead
| 0.95
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Fremont Corporation
| G&A
| 0.15
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Fremont Corporation
| Fringe
| 0.30
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Fremont Corporation
| Materials Handling
| 0.08
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Next, Fremont's implementation team defines the standard schedule to use for billing. This schedule is based on provisional multipliers, and consists of two schedule revisions: one for each half of the calendar year. Burden costs for Overhead are higher for the Administration group, and lower for other divisions of Fremont Corporation.
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Burden Schedule for Billing
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Name
| Cost Plus Billing
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Description
| Burden schedule for billing purposes
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Structure
| CP Buildup Structure
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Type
| Provisional
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Revisions
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Name
| 1993-1 Prov Multipliers
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Start Date
| 28-DEC-1992
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End Date
| 27-JUN-1993
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Multipliers
|
Organization
| Burden Cost Code
| Multiplier
|
Fremont Corporation
| Overhead
| 1.05
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Fremont Corporation
| G&A
| 0.15
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Fremont Corporation
| Fringe
| 0.35
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Fremont Corporation
| Materials Handling
| 0.05
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Administration
| Overhead
| 1.10
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Revisions
|
Name
| 1993-2 Prov Multipliers
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Start Date
| 28-JUN-1993
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End Date
| 26-DEC-1993
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Multipliers
|
Organization
| Burden Cost Code
| Multiplier
|
Fremont Corporation
| Overhead
| 1.10
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Fremont Corporation
| G&A
| 0.15
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Fremont Corporation
| Fringe
| 0.35
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Fremont Corporation
| Materials Handling
| 0.05
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Administration
| Overhead
| 1.10
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Revisions
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Name
| 1994 Prov Multipliers
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Start Date
| 27-DEC-1993
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Multipliers
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Organization
| Burden Cost Code
| Multiplier
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Fremont Corporation
| Overhead
| 1.00
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Fremont Corporation
| G&A
| 0.16
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Fremont Corporation
| Fringe
| 0.30
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Fremont Corporation
| Materials Handling
| 0.05
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Administration
| Overhead
| 1.05
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Fremont Engineering
| Overhead
| 0.95
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Fremont Services
| Overhead
| 0.90
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Fremont Construction
| Overhead
| 0.80
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Fremont Construction
| Materials Handling
| .015
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