Question

A PI has permission to re-budget $50,000 in supplies funds to the equipment line item. In the institution's facilities and administrative cost rate based on MTDC is 50%, how much money will be available for the investigator to spend on equipment?

a. $25,000
b. $33,333
c. $50,000
d. $75,000

Answer 1

The investigator will have the full $50,000 available to spend on equipment because re-budgeted funds for equipment will not be subject to additional costs.

Step-by-step explanation:

If an investigator has permission to re-budget $50,000 in supplies funds to the equipment line item and the institution's facilities and administrative cost rate based on Modified Total Direct Costs (MTDC) is 50%, the money available to the investigator to spend on equipment will be the full amount of $50,000. This is because re-budgeted funds for equipment are not subject to the additional facilities and administrative cost rate. Therefore, whatever amount is moved to the equipment line will be the amount available for spending on equipment.

Answer:

c. $50,000