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Professional staff salaries Administrative support staff Travel Photocopying Other operating costs Cost $2,500,000 $300,000 $250,000 $50,000 $100,000 % of cost Traceable cost 80% $2,000,000 60% $180,000 90% $225,000 90% $45,000 50% $50,000 Total $3,200,000 $2,500,000 Targeted profit $640,000 Anticipated Overhead Predetermined overhead rate Percentage of cost to be added $700,000 28% 20% Total cost of Project Professional staff salaries Administrative support staff Travel Photocopying Other operating costs $41,000 $2,600 $4,500 $500 $1,400 Total Overhead $50,000 $14,000 Total $64,000 Markup $12,800 Billed $76,800 The total cost of MM is $64,000 The billing is $76,800 after adding profit margin Non-traceable costs: Utilities Rent Depreciation Advertising Management salaries Insurance Staff are compensated for a variety of things that are difficult to trace to a specific client project. For example, paid vacations, development trainings, off site meetings are general activities, tracing their cost to sp al activities, tracing their cost to specific clients is not practical. Name: Description: ...
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