9220.2 SERVICE UNIT COSTS
(New 10/74)
A service unit is a unit rendering a distinct class of service (e.g., data processing, laboratory unit, etc.) to other units in the agency. These units differ from the staff support organizational units (e.g., accounting, budgeting, personnel, etc.) in that the latter do not have readily measurable products.
Where service unit costs are material, they will be charged to the programs by use of one of the following methods:
- Machine Hours Methods
Actual cost of the service unit for the period = Machine hourly rate x
Machine hours utilized for the period charge
Actual machine time used by each program for the period = The program's share of the service unit's cost
- Direct Hours or Cost Method
Hours charged to a program for a period = Percentage x
Total hours charged to all programs for the period
Total service unit cost = The program's share of the service unit's cost.
In some instances, it may be more appropriate to price out the direct hours in order that service unit costs are equitably allocated.
Service unit costs may be included as part of administration costs if they are not material in amount or if their inclusion will not materially distort program costs.
