Using the single rate method for overhead allocation. How much overhead should you charge on the total project cost? The income statement and project direct cost estimation given below.

12/31/2013 Revenue 100% 15,000,000 Material Direct Labor (including payroll taxes, fringes & union fees) Subcontractor costs Other direct costs $ 7,200,000 3,300,000 300,000 48% 22% 2% 150,000 1% 73% 27% Total direct costs $10,950,000 Gross profit $4,050,000 Overhead 24% 3,600,000 Net profit (before taxes) 450,000 3% University Vew Direct Costs $1260,000 Material Direct Labor Subcontractor costs 440,000 850,000 Other direct costs $480000 $838000 $630000 5612000