_Material._--Material includes costs of braid, of bleaching, and of
trimming materials and sundries, and also the cartons in which the hats
are packed.
_Labor._--The amount charged to the individual hat for labor includes
all labor costs connected with its manufacture. The amount of direct
labor on each hat was first determined. The indirect labor charge for
each hat was determined by applying to its direct labor charge the
percentage which total indirect labor for the factory bore to the total
direct labor.
_Overhead._--In each domestic factory the total overhead charges were
obtained and the ratio of these charges to the total direct labor cost
of the respective factory was computed. This ratio, expressed as a
percentage of direct labor, was applied to the direct labor cost of
individual hats to determine the overhead charge to be apportioned to
each hat.