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Cold room:
The eggs are kept in the cold room for some time. From where they
are used for injection of virus later.
Process of Vaccine Production (contd.)
Production room -1:
It is a restricted area and in this room virus is exposed and vaccine is produced.
Eggs are moved through conveyor belt and virus is injected.
Production room- 2:
In this room virus or any preservative such as oil is mixed in the container and the
mixed material is homogenized. The vaccine is ready to be filled at this step, it is
filled in the bottles. The bottles are sealed and packed and stored.
Overhead Absorption Rate
● The company can use the average direct labor hours calculated above of 0.4635
DLH per unit to get an estimated figure of the total labor hours that would be
required to perform a job.
● For example, if a job required the company to produce 9,800 units it would
require an estimated 4,542 DLH (0.4635 DLH/Unit x 9800 Units) to perform the
job.
● Overhead Absorption Rate = Estimated Overheads / Estimated DLH
= 1,116,319 / 4,542
=246 / DLH
Overhead Absorption Rate
• The company can then make adjustments to the costs of manufacturing
overhead to get an estimated figure.
• From the figure below it can be seen that overheads range in between Rs.
1,000,000 to Rs. 1,100,000.
• If the company feels that after accounting for high electricity usage and low gas
usage its costs would range somewhere around Rs. 1,116,319,
Overhead Absorption Rate