-347-


Puttin6 in Button Setting together Silk and Cover
Putting on Ornaments har] Lig Covers for Sewing on Handle
Putting on Handle Putting paper on back of bag for.
 handle
 Making tucks or nullers Ti-_IL.Jinu Edues of Covers and Bottoms
 Turning in Cover

 DIMZCT LABOR

 HAND LACING

 TURINGIIG
 Turning Jag, Shaping and Hammering
 Turning, Fraaie Pockiets

 FRAMING
 Framing Purse
 Framing Pockets
 Framing 3sg

 RAME COVER TG
 Covering Frar6 .,,
 Covering Poc-ects
 Covering Purse

 EXAMINING A ;D ?PACKIiTG
 Trimming Thread and Examining
 Wrapping in Tissue.
IPuttinb in 3oxes .nd Labeling

OVERHEAD EXPEITSES

 Overhead exp.mnses include all expcnses which cannot be treated
directly into the .)roduct. T"'i,,y do not include Direct Material and
Direct Labor.

 The following6 is a detailed list of Overhead Ex'enses classified
as to Factory, DesigninZ, Sclling., Distribution, and Administrative
and General. This list covers ell of the items of Overhead ExenIscs
generally al-.licable to the Fanidbag Industry.

 Fixed Costs relating to buildi.igs, machinery, and equipment, such
as Rent, Taxes, Delreciation and Insurance, should be included only for
much buildings, machinery, and equi-mrent actull:' used to manufacture
the -)roduct sold. Expense of nmainte.ining and p-rotecting buildings
completely closed and equipment completely inoper,'tive is to be ex-
cluded from Overhead Ex-enses enteriniL into the Cost Formula.

 Salaries of Executives should be included in Overhcad Ex)enses
for the p)ur-)ose of the Cost Formula only to the extent of a reasonable
amount, tri.ring into consideration the size and nature of the business
and the pro-oortion of such salaries of ov'ners and chief executives.

 Expecnses not to be included in Overhead Ex-ense for the ,)ur-ose
of the Cost Formula are listed on page 11.