ABSTRACT
The Finance Manager has set the cost of a borogrove at £14.50. This is
broken down into:
£
Direct labour 2.35
Fixed overhead (see below) 2.42*
Supervision 56.00
Depreciation (A) 48.00
Test and inspection section 37.00
Contract maintenance charge (B) 10.00
General factory overhead 91.00
£242.00
Note: ‘ Divided at the budgeted weekly rate of 100 borogroves, this is equal to £2.42 per borogrove.
