Question

What is 25% of the assumed P 150,000.00 indirect costs?

Answer 1

Answer:

A sponsor limits Indirect Costs (IC) to 22% of total costs

Assume direct costs (DC) - tuition charge (TC) - equipment costs (E) - dollars over $25K on each subcontract (SubK) = $150,000 (Modified Total Direct Costs - MTDC)

$150,000/ (1-.22) = $150,000/.78 = $192,307 Total costs

$192,307 - $150,000 = $42,307 Indirect costs

Indirect rate = $42,307 IC/$150,000 DC = 28.21% on total direct costs (remember to add TC, equipment costs and dollars over $25K for each subcontract back into total costs after determining indirect costs).

Once the percentage of indirect costs on total direct costs is determined, you can use this rate to apply it as a regular indirect rate on modified total direct costs.

Figure out Direct Costs (DC), and subtract tuition charge (TC) - equipment costs (E) - dollars over $25K on each subcontract (SubK) = $150,000 (MTDC)

(DC-TC-E-SubK) x .2821= Indirect costs

(DC- TC-E-SubK) + Indirect = Subtotal

Take subtotal and add back in TC, E & SubK = Total costs

Explanation:

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