Question

GHA4 NEW-1-Read-only rt Draw FormulasData Review View Office 36 ffice 365 subscription is required ECT COSTS e direct costs for each department are easily identifiable, because they are the costs that are directly attributable to the departmen e direct costs are as follows: Physical Therapy (PT) Occupational Therapy (OT) Speech Therapy (ST) Total Direct Costs 410,000 190,000 120,000 720,000 IRECT COSTS indirect costs will need to be allocated to Physical Therapy (PT), Occupational Therapy (OT), and Speech Therapy (ST). indirect costs in this scenario have been identified as: (1) Clerical Salaries, (2) Administrative Salaries, and (3) Computer Services. e total indirect costs that need to be allocated to PT, OT, and ST are as Clerical Salaries Administrative Salaries Computer Services Total Indirect Costs 60,000 50,000 75,000 185,000 Sheet2 Sheet3 + e雑雰 to search

Answer 1

Based on the information given Indirect cost can be allocated to each department only in the proportion of Direct cost since no other information is mentioned (Assuming you have put the complete question)

	Direct cost	Proportion
PT	410000	56.94444444
OT	190000	26.38888889
ST	120000	16.66666667
Total	720000	100

Allocation of Indirect cost

	Indirect cost	PT (56.94444%)	OT (26.38888889%)	ST (16.6666667%)
Clerical Salaries	60000	34166.66667	15833.33333	10000
Administrative salaries	50000	28472.22222	13194.44444	8333.333333
Computer Services	75000	42708.33333	19791.66667	12500
Total Indirect costs	185000	105347.2222	48819.44444	30833.33333

Therefore as per table above Total Indirect cost Allocation is as below

Physical Therapy (PT) = 105347.2222

Occupation Therapy (OT) = 48819.4444

Speech Therapy (ST) = 30833.33333