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Direct Material Cost = $550000 + $1000000 – $450000 = $1100000. Calculation of Direct Labor Cost will be –. Direct Labor Cost = $20 * $100000 = $2000000. Calculation of Manufacturing Cost will be –. Manufacturing Cost = $100000 + $50000 + $240000 = $390000. Calculation of Factory Cost will be –.

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However, since most construction price deflators are obtained from a combination of price indices for material and labor inputs, they reflect only the change of price levels and do not capture any savings arising from improved labor productivity.

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It optimizes the usage of material, manpower, finance, and the shortage of skilled and efficient labor and at the same time keeps a direct check over the quality measures that are being used. The following machinery list helps any construction industry: • Hydraulic Mobile Stone Crusher. • Self Loading Concrete Mixer. • Mini Dumper.

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Direct material cost per unit = ($ 500 + $ 150 + $ 50 + $ 20)/100 = $ 7.2 per LED. Direct labor cost per unit = $ 100/100 = $ 1 per LED. Manufacturing overhead = $ 1000/100 = $ 10 per LED. So, the total production cost comes to $ 18.20 per LED light. Example 2: Michael started a new business of manufacuring Furnitures.

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Annexure-III LIST OF MAJOR CONSTRUCTION PLANTS & EQUIPMENTS CODE NO. CODE DESCRIPTION EARTH MOVING EQUIPMENT: 0101 Dozer 0102 Wheel Loader 0103 Hydraulic Excavator 0104 Vibratory Compactor ROAD MAKING EQUIPMENT:

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