final exam review week 1 con 270.pdf - CON 270 October 15th...

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1CON 270 – October 15thNotes Exam 1First six questions about lesson 1Next 5 questions about lesson 2The following 5 about lesson 3ODC costs arenot previously identified as a direct material cost, direct labor cost, or indirect cost.It is a cost thatcan be identified, specifically with a final cost objective. Not a cost that the contractor customarilytreats as an indirect cost.(not talking about direct costs, indirect costs, but other).TEST direct cost: any cost that is identified specifically with a particular final cost objective. Slides pg 1-16 oflesson book.examreasons you should model a proposal(page of lesson book is 1-13)(1) gain an understanding,(2) trace cost elements to the source of the ktr estimate,(3) plan costs analysis effortexamples indirect costs(not directly identified with a single cost objective but identified with perhapstwo cost objectives, not directly related):engineering OH (tied to the job)manufacturing OH, (tied to the job)general and administrative - G&A cost (mgnt of the company)Calculating Indirect rates and G&A rateswhat is the indirect production rate is what percent? And direct was a certain cost. The indirect production ratewas a certain percent and applied to x dollars.direct prod cost - $50indirect prod cost - $70General & Administrative - $30TOTAL: $150
2the indirect production rate is (70 divided by 50) 140% and applied to a (140% of 50 dollars)$70 to calculate the dollars for indirect production cost.the G&A rate is (30 divided by 50 plus 70, 30 over 120) 25 % and applied to a (50 plus 70 dollars)$120 to calculate the dollars for G&A indirect production cost.

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