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please solve this asap please note this is one question Bonus Problem (worth 5 extra points on the Midterm Exam - you do not need
please solve this asap
Bonus Problem (worth 5 extra points on the Midterm Exam - you do not need to resolve unless you want the extra points) "Indirect Costs" or "Costs of Doing Business" cannot be easily assigned to a specific work package or a project. The textbook shows three methods to distribute the Indirect Costs of a company named SETI amongst the two projects under execution: MARS and PLUTO (as shown below) SETI Company-wide INDIRECT COSTS OH-Overhead (rent, utilities, derical, machinery) OH S G&A - General & Admin Expenses (proposal prep, upper mgmt. salaries, marketing benefits) G&A S Total INDIRECT COSTS S 120 40 160 Project Direct Costs MARS Project PLUTO Project Total DL-Direct Labor (labor hrs x wage rate) DNL. Direct Non-Labor material equipment, subcontractors $ $ $ 50 40 90 8188 $ $ s 100 10 110 $ $ $ 150 SO 200 Total DIRECT COSTS $ tal INDIRECT COSTS $ Total INDIRECT COSTS S 200 160 360 Methods for distribution of INDIRECT COSTS: Method 1 - Total INDIRECT proportional to Total DIRECT DL and DNL OH and G&A MARS Project PLUTO Project $ $ 110 $ 72 $ 88 $ 162 $ 198 & Total $ 200 $ 160 $ 360 Method 2-OH proportional to DL only; G&A proportional to all DIRECT Costs DL OH (proportional to DL) G&A (proportional to "DLEDNL") DNL MARS Project PLUTO Project $ 50 $ 100 $ 40 $ 80 $ 18 $ 22 S $ 10 s 148 $ 212 BB 88 88N SA Total $ 150 $ 120 $ 40 $ 50 $ 360 ul Method 3 -OH proportional to DL only: GBA proportional to all OLOH-ONL DL OH (proportional to DL) DNL MARS Project PLUTO Project $ 50 $ 100 $ 40 $ 80 $ 40 S 10 s $ 150 Total $ 150 5 120 50 $ 320 130 GRA (proportional to all DL-OH-ONL $ $ 16.25 146 $ 23.75 $ 214 40 360 $ Using the three distribution methods, fill out the table below for a company named AGGIE which is executing two projects: KYLE and REVCILLE (as shown below) AGGIE Company-wide INDIRECT COSTS OH - Overhead (rent, utilities, derical, machinery) OH $ GRA. General Admin Expenses (proposal prep, upper mgmt salaries, marketing benefits) G&A S Total INDIRECT COSTS S 230 70 300 Kyle Project Reveille Project Total Project Direct Costs DL- Direct Labor (labor hrs x wage rate) DNL. Direct Non-labor material equipment subcontractors) $ $ $ 50 40 90 $ $ $ 100 10 110 $ $ $ 150 SO 200 Total DIRECT COSTS S tal INDIRECT COSTS $ Total INDIRECT COSTS S 200 300 SOO Methods for distribution of INDIRECT COSTS: Method 1 - Total INDIRECT proportional to Total DIRECT Kyle Project Reveille Project Total DL and DNL OH and GBA Kyle Project Reveille Project Total Method 2. O proportional to Dt only: G&A proportional to all DIRECT Costs DL OH (proportional to DL) GRA (proportional to "OLONL") ONE Method 3. O proportional to DL only: GBA proportional to all DL+OHODNE Kyle Project Reveille Project Total DL OH (proportional to DL) DNL GRA (proportional to all DLHOHONU) please note this is one question
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