Exhibit-1Electronic Testing Operations- 1988 budgeted expensesAmount in $Direct labour3,260,015OverheadIndirect labour859,242Salary expense394,211Supplies and expense538,029Services245,226Personel allocations229,140Service allocations2,448,1344,713,982Total overheadTotal budgeted expenses7,973,997Depreciation included in service allocationsExhibit-2Electronic Testing Operations- Calculation of burden rate based on 1988 planBurden rate = Total burden $ / Direct labour $ X 100 = $4,713,982 / 3,260,015 X 100 = 144.6%Effective rate = 145%Cost breakdown:VariableDepreciationOtherTotalTotal burden1,426,3171,288,0001,999,6654,713,982Exhibit-4Electronic Testing Operations- Proposed burden rates based on 1988 planMachine hour rateMHBurden in $Main test room332012,103,116 Mechanical test room171031,926,263 503044,029,379 Machine hour rate = Test room burden $ / Machine hour = $ 4,029,379/50,304 = $80.10Effective machine hour rate = $80.00Direct labour hour rateTotal engineering and administrative burden $ = $684,603Total direct labour dollars = $3,260,015Burden rate = Engr. & Admin. Burden $ / DLHs X 100$684,603 / $3,260,015 X 100 = 21%Effective burden rate per direct labour $ =20%Cost breakdown:VariableDepreciationOtherTotal
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- Fall '13