You received the following proposal from ACME and now must model the proposal. Use this information to answer the following questions.

Direct production costs $40.00

Indirect production costs $60.00

G&A $20.00

_____________________________$120.00

FCOM $20.00

Total cost $140.00

The indirect production rate is ____% and applied to the $____ to calculate the dollars for indirect production costs.

a) 50% and $120

b) 100% and $60

c) 150% and $40

d) there is insufficient information to determine

The G&A rate is ____% and applied to $____ to calculate the dollars for G&A:

a) 14.3% and $140

b) 20% and $100

c) 16.7% and $120

d) there is insufficient information to determine