COST ESTIMATION

CHAPTER 8

CHAPTER - 8 COST ESTIMATION

1. MATERIAL COST : Rs.7,500

2. LABOUR COST

: Rs.3,000

Lathe, drilling, welding, power hacksaw, gas cutting cost 3. OVERHEAD CHARGES: The overhead charges are arrived by manufacturing cost Manufacturing Cost =Material Cost +Labour Cost =7500+3,000 =10,500 Overhead Charges =20%of the manufacturing cost =2,100 4. TOTAL COST: Total cost = Material Cost +Labour Cost +Overhead Charges =7,500+3,000+2,100 =12,600 Total cost for this project =Rs.13,000.

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