diff --git a/app/models/hourly_deliverable.rb b/app/models/hourly_deliverable.rb
index f32d372..91afde2 100644
--- a/app/models/hourly_deliverable.rb
+++ b/app/models/hourly_deliverable.rb
@@ -19,8 +19,7 @@ class HourlyDeliverable < Deliverable
     return 0 if contract.billable_rate.blank?
     return 0 if labor_budgets.count == 0 && overhead_budgets.count == 0
 
-    hours = labor_budgets.sum(:hours) + overhead_budgets.sum(:hours)
-    return contract.billable_rate * hours
+    return contract.billable_rate * labor_budgets.sum(:hours)
   end
   
   # Block setting the total on HourlyDeliverables
diff --git a/test/unit/hourly_deliverable_test.rb b/test/unit/hourly_deliverable_test.rb
index 63856d1..611d762 100644
--- a/test/unit/hourly_deliverable_test.rb
+++ b/test/unit/hourly_deliverable_test.rb
@@ -20,13 +20,13 @@ class HourlyDeliverableTest < ActiveSupport::TestCase
       assert_equal 0, d.total
     end
     
-    should "multiply the total number of budgeted hours by the contract billable rate" do
+    should "multiply the total number of labor budget hours by the contract billable rate" do
       contract = Contract.generate!(:billable_rate => 100.0)
       d = HourlyDeliverable.generate!(:contract => contract)
       d.labor_budgets << LaborBudget.generate!(:hours => 10)
       d.overhead_budgets << OverheadBudget.generate!(:hours => 20)
 
-      assert_equal 100.0 * 30, d.total
+      assert_equal 100.0 * 10, d.total
     end
   end