$1\mathrm{.}1$ In the operation of a certain production machine, one worker is required at a direct

labor rate of almost R$13\mathrm{.}50/$hr$.$ An applicable labor factory overhead rate is $50\%$ and

the capital investment in the system is R$400000,$ expected service life of $10$ years

with no salvage value at the end of that period and the applicable machine factory

overhead rate is almost $30\%.$ The work cell will operate $2100h\frac{r}{y}r.$ Use a rate of return

of $25\%$ to determine the appropriate hourly rate for this work cell.

$1\mathrm{.}2$ How would you define each of the following term and give an example of each of

them:

a$)$ Direct labour cost

b$)$ Material cost

c$)$ Overhead cost

$1\mathrm{.}3$ How would you define a production system?