CCAS: Indirect Cost Rate Worksheet

Indirect Cost Rate Clarity

...from the start.

CCAS Indirect Cost Rate Worksheet

In this JavaScript application you can determine indirect cost rates based upon a commonly used (and DCAA accepted) rate structure. This rate structure is but one of many that can be implemented in CCAS's Light software, our cross-platform project cost accounting applications for government contractors. CCAS Light4 also generates DCAA Incurred Cost Submission cost schedules in minutes for any and all of your accounting years with a single button click (or tap)…all fully proven, of course.

Simply complete Steps 1 and 2, and then in Step 3 calculate your indirect cost rates (watch the status line for your "Multiplier"). Also, be sure to review the proof of the calculation and details of the calculation formulas employed.

Key to this and any indirect cost rate structure you may develop in Light is that indirect costs are fully "absorbed" by your direct costs. CCAS's Light software provides this proof of full absorbtion and provides full details of the indirect cost rate structure you implement in your books.

Note that regardless of the indirect cost rate structure you implement - including ones that generate rates for multiple indirect cost pools and which may present lower indirect cost rate percentages by pool (and the "appearance" of lower indirect costs) - your indirect costs and total costs remain exactly the same. Said differently, one rate structure may present the appearance of lower rates and costs, but that rate structure will not change (lower) your total indirect cost “load”.

Note: if this page (which requires a JavaScript capable browser) is saved using the "Save As...Format...Source" command from your browser's "File" menu, it can be run locally when loaded into your browser using "Open File" - even without an active Internet connection.

Step 1-Enter Your Total Costs
(all input fields must have a value)

(Total Costs From General Ledger)

COST CATEGORY DESCRIPTION	AMOUNT (Input)	SUBTOTAL (Computed)
Direct Costs:
A. Total Direct Labor
B. Total Other Direct Costs
Total Direct Costs
Indirect Costs:
C. Total Fringe Benefits
D. Total Overhead
E. Total G&A
F. Total B&P and IR&D
Total Indirect Costs
G. Total Costs

Step 2-Enter Your Total Labor Costs

(Subset of Total Costs)

COST ELEMENT DESCRIPTION	AMOUNT (Input)	SUBTOTAL (Computed)
Labor Costs from General Ledger:
A. Total Direct Labor (from Step 1)
H. Total Overhead Labor
I. Total G&A Labor
J. Total B&P and IR&D Labor
K. Total Labor

Step 3-Click on Compute for Rate Calculation Results
(See Fringe Benefit Rate note, below)

Fringe Benefit Rate

Overhead Rate

G&A Rate

The Proof of the Calculated Rates

COST ITEM

RATE%

AMOUNT

Direct Labor

Overhead on Direct Labor

Other Direct Costs

G&A on Subtotal of Costs

Total Costs

The Indirect Cost Rate Calculation Formulas
(Keyed to Cost Elements Above)

Fringe Benefit Rate (FBR)= C / K
Overhead Rate (OHR)= (((A + H + J) * FBR) + D) / (A + J)
G&A Rate= ((I * FBR) + E + F + (J *OHR)) / (G - ((I * FBR) + E + F + (J *OHR)))

Status Line Display (bottom line in browser window):
Direct Labor Multiplier= (Overhead Rate + 1) * (G&A Rate + 1)
(Your Direct Labor Multiplier is your "loaded" cost per Direct Labor dollar.)

Note: The Fringe Benefit Rate rate is generated to build the Overhead and G&A rates and, in this structure, is not separately stated for pricing or billing. See formula (above).

CCAS's Light Software

CCAS's Light accounting software for government contractors includes Light4 accounting, Capture Timekeeping & Expense Reporting as well as LightSTORM accounting.

Our solutions are everything new, growing, and established government contractors need to cost-effectively meet (and fairly exceed) their financial and government contracts project accounting and reporting requirements. DCAA and GAAP compliant, of course.

Our Capture for Professionals family of iOS native apps provide iPad (and PC and Mac desktop) users with superior time and expense reporting, invoicing and single-entry accounting (think "Schedule C' of Form 1040). For independent professionals and their associates, and each is fully DCAA compliant.

Probably the first formal publication to address JavaScript, the CCAS Indirect Cost Rate Worksheet was featured and detailed in this book from Sams.Net publishers in 1996.

Visited and downloaded tens of thousands of times, this worksheet has aided many government contractors and would-be government contractors alike.

Key to this and any indirect cost rate structure you may design is that indirect costs are fully "absorbed" by your direct costs. CCAS's Light software provides this proof of full absorbtion and, of course, provides full details of the indirect cost rate structure you implement in your books.

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