1. You are analyzing the cost allocation for a project. Below is a breakdown of costs incurred:

   Cost Category	Amount ($)
   Direct Materials	15,000
   Direct Labor	10,000
   Indirect Costs	5,000

   Your requirements are as follows:

   • Allocate indirect costs based on a predetermined allocation base.
   • Determine the total cost of the project.
   • Calculate the direct cost percentage of the total cost.
   • Present the allocated costs in a separate table.
   • Include a paragraph explaining the rationale behind the chosen allocation base.
   • Provide the formula used for cost allocation.