UMORS

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UMORS
Ultimate Multiple Overhead Recovery System
Vander Kooi and Associates, Inc
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Introduction
UMORS is a computerized process based on the
Multiple Overhead Recovery method developed by
Charles Vander Kooi. The method outlines the
manner in which overhead expenses incurred in the
conduct of a service business are recovered
through mark-ups of Materials, Equipment,
Subcontractors and Labor. UMORS is NOT an
estimating program but a program that determines
mark-up rates you need in developing estimates
and charges for the work your company provides.
The successful UMORS software is highly
recommended for small to large businesses
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Starting UMORS
Date of Release
Users Serial Number
Version Number
Licensed User of this Program
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Work in Progress
A quick review of the Gross Sales for the base
year and projections for the new year.
Sales for the Whole Company
Sales for Each Department in the Company
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The Vander Kooi ABC Method
The ABC method is an easy and fair way to
distribute overhead between departments. A The
percentage of a Departments gross sales to the
Companys total sales. B The percentage of
Overhead Employees allocated to a Department. C
The percentage of Field Employees allocated to a
Department. These percentages are key to properly
allocating budgeted expenses to departments in
order to calculate the Labor Mark-up percentage.
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The Main UMORS Menu
This Menu will allow a user to quickly access any
function of UMORS.
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General Information on the Company Departments
Pertinent information for each department are
presented to indicate employee distribution and
sales base and projections.
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Field Employees Work Schedule
Normal work schedules and paid off-days are
determined for each department. These are used
to determine department overtime and benefits.
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Crew Type and Crew Position Definition
Define each type of crew and the crew positions
associated with the work the crew all perform.
This essentially models the ideal work force
structure for the departments in the company.
There is no limit to the number of crew types or
crew positions within a crew type. Each
individual worker can later be assigned to a crew
and position.
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Labor Cost
Labor Cost are entered in two categories Overhead
Employees Company officers, office staff or an
employee that is not
directly chargeable to field work projects. Field
Employees Employees that actually perform the
field work of your company.
Short Method allows you to input gross payroll
total for a quick calculation.
Entering each individuals wages is the desired
process.
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Overhead Employees
Simply enter the employees name and the salary or
hourly rate. Assign the employee to a department
and click the Calculate button.
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Allocating Overhead Employees Time
An overhead employees time can be allocated in
any percentage to a company department. That
department will be responsible for generating
that portion of the employees pay through the
overhead calculation.
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Budget Overhead Calculation
Every time you exit from the Overhead Employees
screen, UMORS will prompt you to automatically
calculate and and enter data into the Budget
Overhead Category for Office and Officers
Salaries. Normally, you will select YES to the
question below. This will let you know that any
changes made to the Overhead Employees have been
taken into account.
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Field Employees
Enter the names and wages for each employee that
will perform the work of the company. You can
assign each employee to a department, a crew, and
a position on that crew. Optionally, you can
specify whether or not the employee will be paid
overtime and what company benefits they will
receive.
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Field Employees Time Allocation
Each Employees time can be allocated in any
percentage to each department. Initially the
employees time is allocated 100 to the
department that was assigned in the Field
Employees screen. This assumes that the
employees hourly wage is constant for all
allocations. If for some reason an employee will
receive a higher or lower rate for some work,
that that employee should be entered as a
separate person with a new wage rate. That
persons work schedule should then be as a Part
Time basis.
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QUICK LOCATOR
There is a Quick Locator button on a number of
function screens. This will save you time
finding the record of interest quickly. Simply
click on the item in the list and then click the
Locate (item) button. You can also list the
items in a number of ways.
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Labor Burden
The Labor Burden Rates are generated for the
Field Workers and the Office (or Overhead) staffs
separately. There are 9 categories that make up
the Labor Burden Rate.
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Equipment Cost Worksheet
Enter each item of equipment and vehicles that
the company department owns in order to do work.
UMORS needs the following information about each
item

• Purchase price
• Amount financed
• Interest rate
• Finance period
• Years of service expected
• Hrs/day being used
• Days/week used
• Weeks/yr used
• Maintenance Cost/yr.
• (Fuel and oil)/hr
• Annual insurance
• Property tax
• License and tags
• Salvage Value

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Equipment Cost Worksheet (cont)
After you have entered the necessary data, CLICK
the Calculate button. The TOTAL COST/HR. that
should be charged for the item is calculated.
The TOTAL YEARLY COST that will result from the
hourly charge is also determined.
General Information Area
Calculation Area
Actions Area
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Equipment Allocation and Assignment
Equipment, like employees, can be allocated to
different departments. This form will allow you
to allocate each item to departments depending on
the percentage of utilization. When a department
is selected, the equipment, used and the crew
assignment will display in the top left of the
form. The top right of the form will display the
departments, use, and /Hr. charge.
Allocation Information
Allocation Selections
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Rented Equipment
If you rent equipment to perform work, enter the
item, rental period, rental charge and then click
the Calculate button. There is no limit to the
number of items you can enter for each department.
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Overhead Vehicles
Overhead vehicles are vehicles that are used in
support of company business not directly billable
to work projects. These could be the company
officers vehicles or allowance paid to employees
that use their vehicle for work related purposes.
The data entered is basically the same as for
regular equipment.
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Overhead Vehicles (continued)
Once all the overhead vehicles have been entered,
and calculated, you can assign the vehicles to
employees.
Click the Assign Overhead Vehicles button.
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Assign Overhead Vehicles
The overhead vehicles and the employees will
display in lists. To assign a vehicle, click on
a vehicle and then on the employee. Then, click
on the Assign button. The vehicle name will
disappear from the left list. The assignment
will appear in the list on the right. After you
assign all the vehicles, click the Next button.
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Overhead Vehicle Expense
On this form, you see how the vehicle cost will
be allocated to the departments. The allocation
is determined by the employees work allocation.
The additional expense will be determined if you
give the employee an Operating Allowance or
Mileage Reimbursement. This is also allocated to
the departments based on the employees work
allocation.
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Materials
The Materials cost that each department requires
is entered as a gross number for each department.
This is normally determined by the cost from the
previous year and then estimate whether you will
use more or less. The Projected Materials cost
will be used to determine future calculations.
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Subcontractors
The Subcontractors cost is also determined from
your previous year experience and the estimating
whether you will use more or less in the next
year.
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Budget Overhead
The Budget Overhead data is where you will enter
all the incidental expenses incurred in doing
business. This data can be entered in two ways
Corporate Level and Department Level.
Corporate Level Expenses that benefit all
departments or cannot be attributed to a
department will be entered at this level. UMORS
will automatically allocate the cost to
departments based on the ABC method.
Department Level Expenses that are unique to to
a department are entered at the Department level.
There may also be a Corporate level allocation
for the same expense.
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Corporate Level Budget Overhead
UMORS provides 28 categories of expenses with a
total of over 115 Activities in the categories.
These are provided as ticklers to stimulate your
thinking and data collection. Once again, these
expenses are ones that benefit all departments
and a portion will affect that departments
overhead expenses Based on the appropriate ABC
value.
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Department Level Budget Overhead
The Department Level overhead is similar to the
Corporate Level with additional information.
The allocation for the category and activity from
the Corporate Level is displayed. If there is an
amount that is unique for this department, then
enter the amount. The total amount will be the
Activity Amount plus the Corporate Allocation.
Corporate Allocation Amount
Total of Corporate and Department amounts.
Department Amount
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Department Solution
The purpose of UMORS is to determine the mark-up
amount for Labor charges in order to recover the
departments overhead. Part of the overhead is
recovered from marking up Materials, Equipment
and Subcontractors. The residual amount must be
recovered from Labor. The Vander Kooi Method
does this in a balanced manner.
Mark-up percentage for Labor for this department.
This value would be used in your estimating and
work charges.
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Company Solution
UMORS also calculates the Mark-up percentage for
Labor for the company as a whole. If you havent
departmentalized your company then this is the
value you will use. For a company with several
departments, this is a good reference to compare
the department recovered mark-ups.
Labor Mark-up for the Company as a whole.
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Crew Unit Man-hour Rate Calculator
The Crew Calculator is a quick way to assemble a
crew with employees and equipment. The crews can
be saved for future reference. It is also very
easy to substitute employees and/or equipment to
see if it impacts the final burdened charge. An
employee or equipment can be assigned to more
than one crew making them job specific.
Depending on the risk level, the percentages for
overtime, fudge factor, and profit can be
adjusted on an ad hoc basis.
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UMORS Reports
UMORS provides a number of reports that provide
essential reference.

• Employees Reports
• Salaries
• Employee Allocations
• Labor Burden Rates

• Equipment Reports
• All Equipment Details
• All Equipment Summary
• Equipment by Department
• Overhead Equipment Details
• Overhead Equipment Assignments
• Equipment Worksheets

• Budget Overhead Reports
• Department Allocation
• Corporate Allocation
• List of Categories and Activities

• Solutions Reports
• Department P/L
• Company P/L
• Department Solution
• Company Solution

• Crew Unit Calculator Report
• Crew Unit Man-hour Rates

• Print Screens
• All Screen Images can be printed.

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UMORS Purchase
UMORS Software 650.00 US Included in the
purchase price of the UMORS program, you are
entitled to have a brief review of your first
database by a senior associate for Vander Kooi
and Associates, Inc. If you have any questions
about UMORS or wish to purchase the program,
contact Vander Kooi Associates, Inc. Phone/fax
843-886-3363 E-Mail vkasc1_at_comcast.net