Ones Pty Ltd is a small childcare / early education centre, looking after kids from 6 weeks to the age of 5 years old.

Traditionally, the centre allocates indirect costs based on Direct Labour Dollars (educators' wages)

The following costs are provided below:

	Under 2 years old	2-less than 3 years old	3-5 years old
Direct Labour Dollars (educators' wages)	$88,000	$220,000	$70,000
Direct costs (supplies)	$35,000	$20,000	$5,000
Food	$10,000	$20,000	$50,000
Number of Children	7	20	11

The total indirect cost for the centre is $500,000 (rent, electricity, manager's wage, chef wage and others).

a) Calculate the indirect cost rate according to traditional costing method (round to 2 decimal places only), using the following table to fill in your answer:

	$
Indirect cost
Cost Driver
Indirect Cost rate

b) Calculate the direct cost per child for age 3-5 years old only, you can use the table below to fill in the answer:

List of direct costs	3-5 years old
Total Direct Cost
Number of Children
Total Direct Cost per child

c) The allocation of indirect cost for 3 age groups are:

Allocation	Under 2 years old	2-less than 3 years old	3-5 years old
Indirect cost	$116,402.12	$291,005.29	$92,592.59

Calculate the total cost per child for Under 2 years old only, using the following template:

Items	Under 2 years old
Total cost per child