Question
Clerical Salaries Administrative Salaries Computer Services Total Indirect Cost Allocation Basis: A B C Indirect Cost to be Allocated $56,000 $55,000 $80,000 $191,000 Allocated to:
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| Clerical Salaries | Administrative Salaries | Computer Services | Total Indirect Cost |
| Allocation Basis: | A | B | C |
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| Indirect Cost to be Allocated | $56,000 | $55,000 | $80,000 | $191,000 |
| Allocated to: |
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| Physical Therapy (PT) |
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|
|
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| Occupational Therapy (OT) |
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| Speech Therapy (ST) |
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| Proof Total | $56,000 | $55,000 | $80,000 | $191,000 |
Allocation Key:
A= # Visits (Volume): PT=9,600/OT=4,000/ST=2,400/Total=16,000(16,000 x $3.50=$56,000)
B= Proportion of Direct Costs: PT=60%/OT=25%/ST=15%/Total =100%(%x$55,000)
C= #Computers in Service: PT=10/OT=3/ST=3/Total = 16 (16x$5,000 each = $80,000)
Worksheet #2
| Rehab Cost Centers | Direct Cost | Indirect Cost | Total |
| Physical Therapy |
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|
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| Occupational Therapy |
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|
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| Speech Therapy |
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|
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| Total | $750,000 | $191,000 | $941,000 |
Note: Direct Cost proportions, rounded, are as follows:
PT=60%/OT=25%/ST=15%/Total = 100%
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