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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. The recorded amounts for this year are as follows:
|
 |
Records for This Year |
|
|
Branch |
Miles Driven |
Direct Labor |
|
North |
275,000 |
38,000 |
|
South |
247,000 |
31,000 |
|
Midtown |
395,000 |
55,500 |
Â
The director plans to use the allocation and information
from last year to determine the rates for
this year. This information follows:
|
Branch |
Miles |
Direct |
Basis |
Indirect Cost |
|
North |
350,000 |
40,000 |
Miles |
300,000 |
|
South |
200,000 |
20,000 |
Labor |
200,000 |
|
Midtown |
500,000 |
64,000 |
Labor |
450,000 |
Â
(a) Determine the rates for this year for each branch.
(b) Use the rate to distribute this year’s total indirect cost. What percentage of this year’s budget is now distributed?
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