Clerical Salaries Administrative Salaries Computer Services Total Indirect Cost
ID: 2545651 • Letter: C
Question
Clerical
Salaries
Administrative
Salaries
Computer
Services
Total
Indirect Cost
Allocation Basis:
A
B
C
Indirect Cost to be Allocated
$56,000
$55,000
$80,000
$191,000
Allocated to:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Proof Total
$56,000
$55,000
$80,000
$191,000
Allocation Key:
A= # Visits (Volume): PT=9,600/OT=4,000/ST=2,400/Total=16,000(16,000 x $3.50=$56,000)
B= Proportion of Direct Costs: PT=60%/OT=25%/ST=15%/Total =100%(%x$55,000)
C= #Computers in Service: PT=10/OT=3/ST=3/Total = 16 (16x$5,000 each = $80,000)
Worksheet #2
Rehab Cost Centers
Direct Cost
Indirect Cost
Total
Physical Therapy
Occupational Therapy
Speech Therapy
Total
$750,000
$191,000
$941,000
Note: Direct Cost proportions, rounded, are as follows:
PT=60%/OT=25%/ST=15%/Total = 100%
Clerical
Salaries
Administrative
Salaries
Computer
Services
Total
Indirect Cost
Allocation Basis:
A
B
C
Indirect Cost to be Allocated
$56,000
$55,000
$80,000
$191,000
Allocated to:
Physical Therapy (PT)
Occupational Therapy (OT)
Speech Therapy (ST)
Proof Total
$56,000
$55,000
$80,000
$191,000
Explanation / Answer
Allocated To Direct cost Indirect cost Total amount Clerical salaries Administration salaries Computer service PT $450000 $33600 $33000 $50000 $566600 OT $187500 $14000 $13750 $15000 $230250 ST $112500 $8400 $8250 $15000 $144150 Total Direct cost 750000 Total Indirect cost 191000 Total 941000
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