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Calvin, Giordano & Associates, Inc. <br />Notes to the Statement of Direct Labor, Fringe <br />Benefits and General Overhead <br />December 31, 2017 <br /> <br /> <br />4 <br /> <br /> <br /> <br />Note C – Accounting Policies <br /> <br />The Company has a job order cost accounting system for the recording and accumulation of cost <br />incurred under its contracts. Each project is assigned a job number so that costs may be segregated <br />and accumulated in the Company’s job order cost accounting system. Labor is charged to each <br />project based on actual cost. <br /> <br />Note D – Overhead Rate Structure <br /> <br />The accompanying schedule of direct labor, fringe and overhead costs provides a companywide rate <br />to only Calvin, Giordano & Associates, Inc. This report includes the activities of Calvin, Giordano <br />& Associates, Inc. on a stand-alone basis. <br /> <br />Allocation bases are used to distribute and allocate overhead costs to intermediate or final cost <br />objectives. The Company uses income projections as the basis for allocation. <br /> <br /> Other direct costs are consistently charged to all projects, not just projects that reimburse for other <br />direct costs. Costs that are generally charged to projects include sub-consultants and travel. <br /> <br />The Company has separate expense accounts for sub-consultants, personal vehicle mileage, and <br />reproduction costs that are project-related. The Company maintains logs documenting direct project <br />usage of certain reproduction costs. These costs are charged at the following firm-wide standard <br />rates: <br />Description <br /> <br />Charge <br />Reproduction expenses <br /> <br />$0.25 <br />Fax expenses <br /> <br />0.35 <br />Vellum/Mylar prints <br /> <br />8.00 <br />Blueprints <br /> <br />1.50 <br />Color copies <br /> <br />2.00 <br /> <br />The Company's method of estimating costs for pricing purposes during the proposal process is <br />consistent with the accumulation and reporting of costs under its job-order cost accounting system. <br /> <br />Certain assets are purchased and depreciated, while others are leased and considered operating <br />leases. Annual lease costs are included in the overhead pool. The depreciation of property and <br />equipment is computed over the estimated useful lives of the assets using the straight-line method, <br />which is in accordance with FAR §31.205-11. <br /> <br /> <br /> <br /> <br />71