I have a cost reimbursement contract (no fee), with provisional rates established.
I'm trying to determine the correct way to determine the non-burdened hourly labor rate - is it a person's salary divided by 2080, or if our company pays semi-monthly, do I take a person's salary, divide it by 24 (number of timesheet periods in a year), and then by the hours worked by that employee in the timesheet period to establish an hourly rate?
For example - Person A has a salary of $150,000, and worked 80 hours in a timesheet period. Is the non-burdened, hourly labor rate:
$150,000/2080 = $72.12 or
$150,000/24/80 = $78.13
Thank you in advance!