Answer:
Indirect cost for client is $13,750
Explanation:
Budgeted salaries = ($420,000 * 6) + ($140,000 * 10)
Budgeted salaries = $2,520,000 + $1,400,000
Budgeted salaries = $3,920,000
Budgeted indirect costs given = $980,000
Cost for client = $30,000 + $25,000
Cost for client =$55,000
Indirect cost for client is:
= $980,000 * ($55,000 / $3,920,000)
= $980,000 * 0.014031
= $13,750.38
= $13,750