or 1500 / 33300 = 4.5 cent per ton

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OVERHEAD CHARGES:

8 per cent interest on $150,000.00 investment $ 12,000.00
8 per cent interest on value of land ($7,000.00) $ 560.00
8 per cent interest on $5,000.00 working capital $ 400.00
3 per cent depreciation on $150,000.00 $ 4,500.00
Insurance (estimated) $ 700.00
Taxes (estimated) $ 1,360.00
Total overhead charges $ 19,520.00

or 19520 / 33300 == 68.7 cent per ton

Total Expense $ 52,298.50

or 52298.50 / 33300 = $1.57 per ton

Divided as follows:

Overhead charges 68.7 cent
Manufacturing Cost 98.3 cent

[15]