Cost item Cost per Unit Armual Total Direct material 1.00 10,000 Direct labor 4.00 40,000 Indirect labor (supervision) 1.20 12,000 Indirect overhead (warehouse! E M Total manufacturing costs 6.70 67,000 G&A f R&D costs 13,400 Total revenues 50,000 Prot (loss) (3 .04) (30,400) The proposed cost accounting picture is shown in Table 4.2. Cost Item Cost per Unit Annual Total Direct material 4.00 40,000 Direct labor 0.00 0 Indirect labor (supervision) 0.00 0 Indirect overhead M Q Total manufacturing costs 4.00 40,000 G&A f R&D costs E m Total revenues 50,000 Prot (loss) .20 2,000