As of June 30, 1951, recorded revemmes from all these revenue pre- ducing facilities totaled $1,939,395.12, all ef which had been deposited to the Contract Advance Fund Acceunt and applied as a credit to the cest of the work under the Contract. OVERHEAD - METHOD OF PAYMENT Under the terms of the Contract, Article VI - Method of Payment, Modification 18 thereef, and Appendix "C", provisiom is made for a quarterly determination and payment of the Contractor's allowable Heme Office overhead. Allowable Home Office overhead bears the same relatien to total Home Office overhead as total basic wages of this Contract, as defined by the Contract, bear to the total basic wages of all the Contractor's operational activities. In Part I, of Appendix "C" are set forth the fellowing general account classifications which deseribe the items of expense that make up the Contractor's Home Office overhead, as determined by the Report of dudit of Records ef the Contractor, prepared fy Deuglass NeKenzie, C.P.A., as of December 31, 1948: Salaries, Accounts Receivable Written Off, Advertising, Blueprints, Contributions, Depreciation, Insurance, Le- gel and Accounting Pees, Licenses and Permits, Menberships, Miscellaneous Expense, Meving and Storage, Office Cleaning and Maintenance, Office Rent, Office Changes and Installation Expenses, Office Supplies and Expenses, Office Utilities, Outside Typing, Payroll axes, Pest Contract Audit, Promotion and Research, Repairs, Subscriptions and Dues, Taxes - Personal Property, Tele- phone and Telegraph, Travel and Entertainment. In Part II, of Appendix "C", the following categories of Promotion and General Expense classificatiens are eliminated from the Contractor's Home Office expenses as non-allowable under the terms of the Contract: 1. Advertising (except Help Wanted) 2- Contributions and Donations 3- Extra-ordinary Legal Fees ho Expenses of Litigation 3« Accounting Fees Pertaining to Tax Returns 6. Licenses and Permits 7 > Memberships 8. 9o Entertainment The salaries of James T. Holmes, D. Lee Narver, and the Project Manager and that portion ef the salaries of other corperate 11-37