Full Definition of SPILLAGE. 1. : the act or process of spilling. 2. : the quantity that spills: material lost or scattered by spilling.See spillage defined for English-language learners. See spillage defined for kids. ADVERTISEMENT.ull Definition of SPILLAGE. 1. : the act or process of spilling. 2. : the quantity that spills: material lost or scattered by spilling. See spillage defined for English-language learners. See spillage defined for kids. ADVERTISEMENT.
The billable-hour system is the way most lawyers in big firms charge clients, but it serves no one. Well, almost no one. It brings most equity partners in those firms great wealth. Law firm leaders call it a leveraged pyramid.
The 500 hours are indirect labor hours, and thus part of the internal shop overhead. If the shop billed labor by the hour, the cost of this indirect labor would be added to the billable labor rate. Billable labor rate times the supervisory hours (500 x $50 = $25,000) equals the cost of indirect labor.