Dermott Accounting supplies the following direct costs and has asked you to develop a recovery rate for indirect costs based on professional services costs.

	$	$
Direct costs
Professional services	800,000	800,000
Indirect costs
Computers	92,000
Insurance	105,000
Lighting	60,000
Maintenance	40,000
Payroll tax	67,000
Photocopier	48,000
Rates	41,000
Stationary	20,000
Superannuation	30,000
Telephone	61,000
Travel	36,000	600,000
Total cost		1,400,000

Answer: Overhead Applied =