Indirect charges (overhead) may be charged on ALL, SOME, or NONE of the costs incurred under a sponsored agreement depending on the agency involved and the terms of the agreement.
TOTAL DIRECT COST METHOD:
Indirect charges are applied at the agreed upon rate to all costs incurred under the sponsored agreement.
MODIFIED TOTAL DIRECT COSTS METHOD:
Indirect charges are applied at the agreed upon rate to all costs EXCEPT the following: