Business & Management For Engineers 3.

**Costing** ## Deliverables 3. The following are predicted to occur during 2009 (which is about to start):- | Direct materials cost | £50,000 | | | Direct labour costs | £80,000 | | | Direct labour time | 16,000 | hours | | Indirect labour cost | £25,000 | | | Depreciation of machinery | £8,000 | | | Rent and rates | £10,000 | | | Heating lighting and power | £5,000 | | | Indirect materials | £2,000 | | | Other indirect costs | £1,000 | | | Machine time | 3,000 | hours | All direct labour is paid at the same hourly rate. A product is currently in development and production is due to start in 2009. It is estimated that this requires materials and components at a cost of £1,150. The estimated direct labour hours are 250 hours of which 50 involve the use of machinery. Deduce the logical cost for the job and explain the basis of dealing with overheads that you suggest. ## Platform Windows XP