Federal regulations require that similar costs be treated ... and administrative rate. The rules for cost allocation clearly state that similar costs, in like circumstances, must be allocated ...

To calculate the rate of overhead, divide the indirect costs by the allocation measure you're using. So, the denominator in your formula may be the total number of direct labor hours involved.

Federal regulations require that similar costs be treated ... and administrative rate. The rules for cost allocation clearly state that similar costs, in like circumstances, must be allocated ...