Kan. Admin. Regs. § 1-33-6
The rates and charges to be made can be expressed in general terms by the following formula:
| Where | 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 | |
| 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.
(Authorized by K.S.A. 75-3706 and 75-4703; effective, E-74-4, Nov. 2, 1973; effective May 1, 1975; amended May 1, 1978.)