To assess whether a contract to supply moulded parts is onerous, Nivelane lists the costs still to be incurred: direct labour 210,000; direct materials 340,000; share of the depreciation of the press used for this contract and others, using the key chosen by Nivelane (case data), 75,000; share of head office administrative costs 40,000. Compute the cost of fulfilling the contract.
- Direct labour
- 210,000
- Direct materials
- 340,000
- Share of the depreciation of the press
- 75,000
- Share of head office administrative costs
- 40,000