Question
In: Accounting
Indirect Costs Administration $ 1,345,203 Events Ticket Office $ 163,000 Events Video $ 415,442.00 Repair and...
| Indirect Costs | ||
| Administration | $ 1,345,203 | |
|
Events Ticket Office |
$ 163,000 | |
| Events Video | $ 415,442.00 | |
|
Repair and Replacements |
$ 1,288,984.00 | |
|
Events Conditioning and Medicine |
$ 717,062.00 | |
|
Events Promotions |
$ 1,951,358.00 | |
|
Events Development |
$ 566,840.00 | |
| Miscellaneous | $ 345,000 | |
|
Total Indirect Costs |
$ |
Use "number of events" as a basis to allocate Indirect costs
Events
Monday Events 10
Tuesday Events 40
Wednesday Events 50
Thursday Events 70
Friday Events 40
Saturday Events 80
Sunday Events 90
Solutions
Expert Solution
In order to allocate indirect costs:-
Step 1:- Calculate the total indirect costs
| Particulars | Amount |
| Administration | 1,345,203 |
| Events Ticket office | 163,000 |
| Events Video | 415,442 |
| Repairs & Replacements | 1,288,984 |
| Events conditioning and medicines | 717,062 |
| Events Promotions | 1,951,358 |
| Events Development | 566,840 |
| Miscellaneous | 345,000 |
| Total Indirect costs | 6,792,889 |
Step 2:- Allocate Indirect costs
Total Indirect costs - $6,792,889
| Day | No.of events | Indirect cost allotment |
| Monday Events | 10 | 178,760.24 |
| Tuesday Events | 40 | 715,040.95 |
| Wednesday Events | 50 | 893,801.18 |
| Thursday Events | 70 | 1,251,321.66 |
| Friday Events | 40 | 715,040.95 |
| Saturday Events | 80 | 1,430,081.89 |
| Sunday Events | 90 | 1,608,842.13 |
| Total | 380 | 6,792,889 |
In order to calculate the Indirect cost allotment for any particular day, use the following formula
Total Indirect costs * (No.of events for the particular day)/Total Number of events
For example:- Indirect cost allocation to Wednesday is calculated by:-
$6,792,889 * 50/380 = $893,801.18
ekkarill92 answered 1 year agoRelated Solutions
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