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How to quickly develop 3 Key Ratios to Allocate almost any Indirect Expense for a Fair & Reasonable evaluation.
Development of Key Allocation Ratios Spreadsheet
This spreadsheet is a template that shows how to quickly develop 3 key ratios that you can use to allocate almost all indirect expenses between multiple indirect pools and any intermediate pools such as Occupancy and Support Services.
These Key 3 ratios are Labor Dollar, Labor Hour, and Square Footage ratios. As an added bonus, I show one way of using the same information to develop and apply a Fringe Benefits rate. The information that you would have to input is shown in "Blue". All other calculations, rates, and numbers are automatically developed.
You can add additional lines for more staff. Just be sure to check that the formulas include any additional lines you may add for staff. I recommend you do not add at the last staff name, but just before the last one. This way the formula will generally include all additional lines.
This is proven to be a time saver and an excellent source document in support of the development and allocation of indirect costs