Specifies an additional percentage to cover benefits or administrative costs.
Direct Unit Cost * (1 + (Indirect Cost% / 100)) = Unit Cost.
For an employee with an annual salary of $ 104,000 the direct unit cost per hour is $ 50.00. The employee's benefits equal an amount of 30% of the salary. The following table shows that the unit cost is 65.00.
| Cost Type | Cost |
|---|---|
Direct Unit Cost | $ 50.00 |
Indirect Cost % | 30% = $ 15.00 |
Unit Cost | $ 65.00 |
 Tip |
|---|
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