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Indian Limited has an established accounting practice of allocating overhead costs using an allocation base of

direct labor dollars. Indian limited also has an established accounting practice of allocating G&A costs using a base of total costs excluding G&A. Indian Limited has costs FY 2005 as follows:


Direct Labor Dollars $4,000,000

Overhead Costs $1.000,000

Other Direct Costs $3,000,000

G&A Costs $2,000,000


The cost for indian limited's contract with BCD corp include $100,000 of direcdt labor and $800,000 of total costs (excluding G&A)


What are the overhead costs allocable to the contract with BCD?

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