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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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