Kan. Admin. Regs. § 1-33-6 - Formulae for charges
The rates and charges to be made can be expressed in general terms by the following formula:
A = the budgeted annual expenditures allocated to a cost center
B = the percentage of annual administrative overhead allocated to a cost center
C = the percentage of annual general operations overhead allocated to a cost center
D = annual depreciation of equipment or software allocated to a cost center
E = total annual cost of operating a cost center
Where F = total monthly cost of operating a cost center
G = the average measured units of use per month of a cost center
H = the rate per unit of use of a cost center
E = A + B + C + D
F = E÷ 12
H = F÷ 12
A large cost center may be broken down into smaller sub-cost centers, if it is reasonable that only a part of its resources may be required by a user. When this is done the costs will be prorated to the sub-cost centers in proportion to their size within the cost center.
Notes
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