Profit Report: Cost divided by Total Hours doesn’t equal staff cost rate

When you run the Profit Report detailed by Staff, you might expect the Cost divided by Total Hours to equal the staff member's cost rate. This might not always be the case.
The Cost amount shown in the Profit Report includes costs associated with expenses, but the Total Hours don't include expenses because they are based on units, not time.
Total Cost divided by Total Hours doesn't equal Staff Rate
In the following example, Total Cost for staff ID JPH is $54,825. When divided by the total hours, 218, the staff rate is $251.49. JPH's cost rate is $250.00.
In the WIP transactions that are the source of these amounts, there are 2 expense transactions with a total cost of $325.00 that's included in the Profit Report's Cost amount, but there are no hours related with these expenses to add to the Total Hours.
If you subtract the $325 expense cost from the $54,825 Total Cost, you have $54,500 which, when divided by the total hours of 218, yields the $250.00 cost rate for JPH.