Question
Assume the city of Shreveport has the following table for full cost of its service program. What is the indirect cost rate if it is
Assume the city of Shreveport has the following table for full cost of its service program. What is the indirect cost rate if it is only based on the direct labor cost?
| Nurses | Annual cost | Percent of total input costs | |
|---|---|---|---|
| Direct labor | $65,000 | 75.58% | |
| Direct non-labor | $6,000 | 6.98% | |
| Indirect labor | $10,000 | 11.63% | |
| Indirect non-labor | $5,000 | 5.81% | |
| Total cost per nurse | $86,000 | 100% | |
| Full cost of nurses | 7.5*$86,000 | $645,000 |
a.11.63%
b.23.08%
c.5.81%
d.17.44%
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Intermediate Accounting 2007 FASB Update Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
12th Edition
0470128763, 978-0470128763
