In this activity, you will test your knowledge of Direct Cost Issues.

The Scenario: A faculty member has sketched out the following preliminary budget for a new NIH grant application. Although he anticipates spending about 10% of his effort on this project, he doesn't want to propose effort or charge any salary to the project.

Review the proposed budget and then answer the following questions. (Note: the administrative expenses are not integral to the project)

Proposed Budget
Personnel
	Effort	Base Salary	Salary	Fringe Benefit	Total Cost
PI/Project Director	0%	$152,000	$0	$0	$0
Faculty Member No. 2	25%	$220,000	$55,000	$12,020	$67,020
Graduate Student	50%	$30,000	$15,000	$0	$15,000
Postdoctoral Fellow	100%	$28,350	$28,350	$3,289	$31,689
Administrator	100 hours	$15 per hour	$1,500	$360	$1,860
	TOTAL				$115,569

Equipment
Dell Computer					$2,300
Research Equipment					$12,000

Supplies
Computer Supplies					$1,200
Laboratory Supplies					$2,500
Photocopy Charges					$2,000

1. Answer the Following Questions