Question
Indian Limited has an established accounting practice of allocating overhead costs using an allocation base of direct labor dollars. Indian limited also has an established
Indian Limited has an established accounting practice of allocating overhead costs using an allocation base of direct labor dollars. Indian limited also has an established accounting practice of allocating G&A costs using a base of total costs excluding G&A. Indian Limited has costs FY 2005 as follows:
Direct Labor Dollars $4,000,000
Overhead Costs $1.000,000
Other Direct Costs $3,000,000
G&A Costs $2,000,000
The cost for indian limited's contract with BCD corp include $100,000 of direcdt labor and $800,000 of total costs (excluding G&A)
What are the overhead costs allocable to the contract with BCD?
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