Common use of Indirect Manufacturing Costs Clause in Contracts

Indirect Manufacturing Costs. Costs for plant and equipment are to be applied to standard costs taking normal capacity utilization as a reference. Costs which are ultimately allocated to Product based on standard direct labour hours of the operating departments. These costs include: · Indirect Production Labour - salaries of employees engaged in Production activities which are not classified as direct labour, including supervision, clerical, etc. · Costs of Direct Labour - employees not utilized for the manufacturing of Product such as training and general duties. · Indirect Materials - supplies and chemicals which are used in the manufacturing process and are not assigned to specific Products but are included in manufacturing overhead costs. Includes supplies for which direct assignment to Products is not practical. · Utilities - expenses incurred for fuel, electricity and water in providing power for Production and other plant equipment and waste disposal. · Maintenance and Repairs - amount of expense incurred in-house or purchased to provide services for plant maintenance and repairs of facilities and equipment. · Other Services - purchased outside services and rentals such as the cost of security, ground maintenance, etc. · Depreciation - of plant and equipment utilizing the straight-line method of calculation. · Insurance - cost of comprehensive and other insurance necessary for the safeguard of manufacturing plant and equipment. · Taxes - expense incurred for taxes on real and personal property (manufacturing site, buildings and the fixed assets of equipment, furniture and fixtures, etc.) If manufacturing site includes other operations (marketing, R&D, etc.), taxes are allocated to manufacturing on the basis of total real and personal property. · Cost of manufacturing, service departments - such as (where applicable): · Packaging Engineering · Manufacturing Maintenance · Industrial Engineering · Receiving and Warehousing · Purchasing and Accounting · Production Scheduling · Inventory Management · Plant Materials Management · Central Weigh · Manufacturing Administration · Allocated costs of services provided to manufacturing including: (where applicable): · Cafeteria · Personnel Operations · Health and Safety Services · Division Engineering and Operations Services · Plant Services (housekeeping) · Manufacturing Information Systems · Plant Power · Office of V.P. Manufacturing Various bases are used for allocating these costs to manufacturing operating departments including headcount, square feet, metered utilities use, estimated services rendered, EDP computer hours, etc.

Indirect Manufacturing Costs. Costs for plant and equipment are to be applied to standard costs taking normal capacity utilization as a reference. Costs which are ultimately allocated to Product product based on an appropriate method such as standard direct labour hours labor hours, tank hours, grams, vials, etc., of the operating departments. These costs include: · • Indirect Production Labour Labor - salaries of employees engaged in Production production activities which who are not classified as direct labourlabor, including supervision, clerical, etc. · • Costs of Direct Labour Labor - employees not utilized for the manufacturing of Product product such as training training, downtime and general duties. · • Indirect Materials - supplies and chemicals which are used in the manufacturing process and are not assigned to specific Products products but are included in manufacturing overhead costs. Includes supplies for which direct assignment to Products products is not practical. · • Utilities - expenses incurred for fuel, electricity and water in providing power for Production production and other plant equipment and waste disposalequipment. · • Maintenance and Repairs - amount of expense incurred in-house or purchased to provide services for plant maintenance and repairs of facilities and equipment. · • Other Services - purchased outside services and rentals such as the cost of security, ground maintenance, etc. · • Depreciation - of plant and equipment utilizing the straight-line method of calculation. · • Insurance - cost of inventory insurance, comprehensive insurance and other insurance necessary for the safeguard of manufacturing plant and equipment. · • Taxes - expense incurred for taxes on real and personal property (manufacturing site, buildings and the fixed assets of equipment, furniture and fixtures, etc.) ). If manufacturing site includes other operations (marketing, R&D, etc.), taxes are allocated to manufacturing on the basis of total real and personal property. · • Cost of manufacturing, service departments - such as as: (where applicable): · ) • Packaging Engineering · • Manufacturing Maintenance · • Industrial Engineering · • Receiving and Warehousing · • Purchasing and Accounting · • Production Scheduling · • Inventory Management · • Plant Materials Management · • Central Weigh · • Manufacturing Administration · • Regulatory Affairs direct support to manufacturing (not to exceed $80,000 per year for a three(3) year period) • Allocated costs of services provided to manufacturing including: (where applicable): · ) • Cafeteria · • Personnel Operations · • Health and Safety Services · • Division Engineering and Operations Services · • Plant Services (housekeeping) · • Manufacturing Information Systems · • Plant Power · • Office of V.P. Manufacturing Various bases are used for allocating these costs to manufacturing operating departments including headcount, square feet, metered utilities use, estimated services rendered, EDP computer hours, etc.

Indirect Manufacturing Costs. Costs for plant and equipment are to be applied to standard costs taking normal capacity utilization as a reference. Start-up costs including reasonable costs for failed validation batches Costs which are ultimately allocated to Product product based on standard direct labour hours of the operating departments. These costs include: · • Indirect Production Labour - salaries of employees engaged in Production production activities which who are not classified as direct labour, including supervision, clerical, etc. · • Costs of Direct Labour - employees not utilized for the manufacturing of Product product such as training and general duties. · • Indirect Materials - ‑ supplies and chemicals which are used in the manufacturing process and are not assigned to specific Products products but are included in manufacturing overhead costs. Includes supplies for which direct assignment to Products products is not practical. · • Utilities - ‑ expenses incurred for fuel, electricity and water in providing power for Production production and other plant equipment and waste disposal. · • Maintenance and Repairs - amount of expense incurred in-house in‑house or purchased to provide services for plant maintenance and repairs of facilities and equipment. · • Other Services - ‑ purchased outside services and rentals such as the cost of security, ground maintenance, etc. · • Depreciation - of plant and equipment utilizing the straight-line straight‑line method of calculation. · • Insurance - ‑ cost of comprehensive and other insurance necessary for the safeguard of manufacturing plant and equipment. · • Taxes - ‑ expense incurred for taxes on real and personal property (manufacturing site, buildings and the fixed assets of equipment, furniture and fixtures, etc.) If manufacturing site includes other operations (marketing, R&D, etc.), taxes are allocated to manufacturing on the basis of total real and personal property. · • Cost of manufacturing, service departments - such as as: (where applicable): · ) • Packaging Engineering · • Manufacturing Maintenance · • Industrial Engineering · • Receiving and Warehousing · • Purchasing and Accounting · • Production Scheduling · • Inventory Management · • Plant Materials Management · • Central Weigh · • Manufacturing Administration · • Allocated costs of services provided to manufacturing including: (where applicable): · ) • Cafeteria · • Personnel Operations · • Health and Safety Services · • Division Engineering and Operations Services · • Plant Services (housekeeping) · • Manufacturing Information Systems · • Plant Power · • Office of V.P. Manufacturing Various bases are used for allocating these costs to manufacturing operating departments including headcount, square feet, metered utilities use, estimated services rendered, EDP computer hours, etc.

Indirect Manufacturing Costs. Costs for plant and equipment are to be applied to standard costs taking normal capacity utilization as a reference. Costs which are ultimately allocated to Product based on an appropriate method such as standard direct labour hours labor hours, tank hours, grams, vials, etc. of the operating departments. These costs include: · - Indirect Production Labour Labor - salaries of employees engaged in Production production activities which who are not classified as direct labourlabor, including supervision, clerical, etc. · - Costs of Direct Labour certain direct labor - employees not utilized for the manufacturing of Product Product, such as training training, downtime and general duties. · - Indirect Materials - supplies and chemicals which are used in the manufacturing process and are not assigned to specific Products Product but are included in manufacturing overhead costs. Includes supplies for which direct assignment to Products Product is not practical. · - Utilities - expenses incurred for communications, fuel, electricity and water in providing power for Production production and other plant equipment and waste disposalequipment. · - Maintenance and Repairs repairs - amount of expense incurred in-house or purchased to provide services for plant maintenance and repairs of facilities and equipment. · - Other Services services - purchased outside services and rentals rentals, such as the cost of security, ground maintenance, etc. · - Depreciation - of plant and equipment utilizing the straight-line method of calculation. · - Insurance - cost of comprehensive and other insurance necessary for the safeguard of manufacturing plant and equipment. · - Taxes - expense incurred for taxes on real and personal property (manufacturing site, buildings and the fixed assets of equipment, furniture and fixtures, etc.) ). If manufacturing site includes other operations (marketing, R&D, etc.), taxes are allocated to manufacturing on the basis of total real and personal property. · - Cost of manufacturing, manufacturing service departments - such as (where applicable): · - Packaging Engineering · - Manufacturing Maintenance · - Industrial Engineering · - Receiving and Warehousing · Purchasing and Accounting · - Production Scheduling · - Inventory Management · Scheduling - Plant Materials Management · management - Central Weigh · - Manufacturing Administration · - Purchasing - Accounting - Allocated costs of services provided to manufacturing including: (where applicable): · - Cafeteria · - Personnel Operations · - Health and Safety Services · - Division Engineering and Operations Services · - Plant Services (housekeeping) · - Manufacturing Information Systems · Services - Plant Power · - Office of V.P. VP Manufacturing Various bases basis are used for allocating these costs to manufacturing operating departments including headcounthead count, square feet, metered utilities use, estimated services rendered, EDP computer hours, etc.