The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. The recorded amounts for this year are as follows:

The director plans to use the allocation and information from last year to determine the rates for this year. This information follows:

(a) Determine the rates for this year for each branch.
(b) Use the rate to distribute this year’s total indirect cost. What percentage of this year’s budget is now distributed?

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Records for This Year Branch North South Midtown Direct Labor Hours 38,000 31,000 55,500 Miles Driven 275,000 247,000 395,000 Indirect Cost Allocation Direct Miles Labor Branch Driven Hors Basis Last Year, $ North 350,000 40,000 Miles 300,000 South 200,000 20,000 Lab200,000 Midtown 500,000 64,000 Lab450,000