Encl. (9) to COMDTINST 4610.6
Example of Repair Costs (Direct and Indirect) by Military
Facility without a Cost Accounting System
Assume a repair job required 40 hours of regular civilian time plus 10 hours overtime.
Overtime was authorized because the item was required to support a priority mission. The regular
civilian rate is .50 per hours. Military apprentices (E-1) worked 10 hours at the standard rate of
.65 per hour plus 32 percent of the total standard rate. Material (itemized) used in the repair
work cost the government 5.50. Some parts removed were salvaged at the local DRMO;
salvage value .75.
REPAIR COST STATEMENT
Item:
Aircraft Leading Edge
Value:
,750.00
Civilian labor 40 hours @ .50/hr
$
620.00
Civilian indirect labor cost
42.9 percent of 0.00
265.98
Civilian overtime 10 hours @ .25/hr
232.50
Military labor 10 hours @ .65/hr
96.50
Military indirect labor costs
32 percent of .50
30.88
Total Labor Costs
||content||
,245.86
Overhead
30 percent of
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,245.86
373.76
Direct material costs (must be itemized)
675.50
Accessorial Cost
3.5 percent of 5.50
23.64
Salvage value of parts removed
52.75
Total Repair Cost
,266.01
Date:
________________________________
[Technically Qualified Person]
[Title]
[Location]