Attachment_8_-_Indirect_Cost_Worksheet.pdf

123 Easy, Inc.

Indirect Cost Worksheet Three Tier

TRIAL BALANCE

ACCOUNT AMOUNT DIRECT IR&D FRINGE OVERHEAD G&A UNALLOW PROOF Notes

Labor 515,000$ 400,000$ 25,000$ -$ 10,000$ 80,000$ -$ 515,000$ Vacation 33,475 33,475 33,475 Holidays 22,145 22,145 22,145 Sick Leave 11,330 11,330 11,330 Payroll Taxes 52,500 52,500 52,500 401 (k) Plan 15,000 15,000 15,000 Group Insurance 36,000 36,000 36,000 Materials & Supplies 33,400 28,400 5,000 33,400 Consultants 6,200 5,700 500 6,200 Travel 1,650 1,400 250 1,650 Other Direct Costs 3,050 2,800 250 3,050 Subcontracts 100,000 100,000 100,000 Rent 125,000 120,000 5,000 125,000 Utilities 13,200 12,000 1,200 13,200 Telephone 6,600 6,000 600 6,600 Depreciation 22,000 21,000 1,000 22,000 Direct Equipment Purcha 10,000 10,000 10,000 Equipment Rental 5,500 5,000 500 5,500 Expendable Equipment 9,000 6,000 3,000 9,000 Repairs & Maintenance 5,500 5,000 500 5,500 Office Supplies 2,500 2,500 2,500 General Lab Supplies 50,000 50,000 50,000 Travel 5,000 1,000 4,000 5,000 Consultants 4,500 4,000 500 4,500 Waste Disposal 1,000 1,000 1,000 Training 3,000 3,000 3,000 Legal 30,000 5,000 25,000 30,000 1.

Accounting 15,000 15,000 15,000 Liability Insurance 900 900 900 Interest 11,500 11,500 11,500 2.

Licenses 250 250 250 Dues & Subscriptions 300 300 300 Postage 200 200 200 Recruitment 400 400 400

Trial Balance Total 1,151,100$ 548,300$ 31,000$ 170,450$ 244,000$ 120,850$ 36,500$ 1,151,100$

Fringe Benefit Allocation 132,388 8,274 (170,450) 3,310 26,478 - (33.097% of Labor)

Cost Pool Totals 1,151,100$ 680,688$ 39,274$ -$ 247,310$ 147,328$ 36,500$

NOTES:

1. Legal fees for patent costs unallowable.

2. Interest costs unallowable.

STEPS TO COMPLETING WORKSHEET

1. Get the company trial balance for all expense accounts

2. For each expense account identify costs by cost pool (direct, fringe, etc.)

3. Calculate the fringe benefit rate (see example on "Fringe" Sheet)

4. Allocate fringe benefits to each cost pool based on the fringe benefit rate

5. Determine each cost pool and calculate the Overhead and G&A rates (see "Overhead" and "G&A" sheets)

FRINGE BENEFITS

(Three Tier Example)

ELEMENT AMOUNT % OF BASE

POOL:

Vacation 33,475$ 6.50% Holidays 22,145 4.30% Sick Leave 11,330 2.20% Payroll Taxes 52,500 10.19% 401(k) Plan 15,000 2.91% Group Insurance 36,000 6.99%

TOTAL (A) 170,450$ 33.097%

BASE:

Direct Labor 400,000$ Overhead Labor 10,000 G&A Labor 80,000 IR&D Labor 25,000

TOTAL (B) 515,000$

RATE = (A) / (B) 33.097%

NOTE:

PAID ABSENCES: For informational purposes: 123 Easy's paid absence policy is as follows:

Vacation: 3 weeks or 120 hours Holidays: 10 days or 80 hours Sick Leave: 5 days or 40 hours

OVERHEAD

(Three Tier Example)

ELEMENT AMOUNT % OF BASE NOTES

POOL:

Overhead Labor 10,000$ 1.77% Overhead Labor Fringe Benefits 3,310 0.59% 1.

Rent 120,000 21.21% 2.

Utilities 12,000 2.12% 2.

Telephone 6,000 1.06% Depreciation-Lab Equip 21,000 3.71% Equipment Rental 5,000 0.88% Expendable Equipment 6,000 1.06% Repairs & Maintenance 5,000 0.88% General Lab Supplies 50,000 8.84% Travel 1,000 0.18% Consultants 4,000 0.71% Waste Disposal 1,000 0.18% Training 3,000 0.53%

TOTAL (A) 247,310$ 43.72%

BASE:

Direct Labor 400,000$ IR&D Labor 25,000

Subtotal 425,000$ Direct Labor Fringe Benefits 132,388 IR&D Fringe Benefits 8,274

TOTAL (B) 565,662$

RATE = (A) / (B) 43.72%

NOTES:

1. FRINGE BENEFITS: Fringe benefit rate multiplied by Labor; computed as follows: Overhead: 33.097% x $10,000 = $3,310

2. RENT & UTILITIES: 123 Easy Inc. allocates rent and utilities between Overhead and G&A based on square footage.

G & A

(Three Tier Example)

ELEMENT AMOUNT % OF BASE NOTES

NOTES:

POOL: 1. FRINGE BENEFITS: Fringe benefit rate G&A Labor 80,000$ 9.07% multiplied by labor: G&A: 33.097% x $80,000 = $26,478 G&A Fringe Benefits 26,478 3.00% 1. 2. RENT & UTILITIES: 123 Easy, Inc. allocates rent Rent 5,000 0.57% 2. and utilities between Overhead and G&A based on square Utilities 1,200 0.14% 2. footage.

Telephone 600 0.07% 3. G&A BASE/MODIFIED COST BASE: The base is total Depreciation 1,000 0.11% costs (including overhead) excluding equipment and Equipment Rental 500 0.06% subcontract costs in excess of $25,000 per subcontract per Expendable Equipment 3,000 0.34% project period.

Repairs & Maintenance 500 0.06% 4. IR&D: It is NIH's/DHHS's policy to exclude IR&D costs from Office Supplies 2,500 0.28% the G&A pool and include it in the G&A base, thus, these Travel 4,000 0.45% values include element costs relating to both "Direct" and Consultants 500 0.06% IR&D activities.

Legal 5,000 0.57% Accounting 15,000 1.70% Liability Insurance 900 0.10% Licenses 250 0.03% Dues & Subscriptions 300 0.03% Postage 200 0.02% Recruitment/Relocation 400 0.05%

TOTAL (A) 147,328$ 16.70%

BASE (modified cost): 3.

Direct Labor 400,000$ Direct Labor Fringe Benefits 132,388 IR&D Labor 25,000 IR&D Fringe Benefits 8,274 Overhead 247,310 Materials & Supplies 33,400 4.

Consultants 6,200 4.

Travel 1,650 4.

Other Direct Costs 3,050 4.

Equipment 10,000 4.

Subcontracts 100,000 4.

SUBTOTAL 967,272$

Equipment (10,000) 3.

Subcontracts > $25,000 (75,000) 3.

TOTAL (B) 882,272$ 3.

RATE = (A) / (B) 16.70%